This is how it went down….

gaskiller

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We will produce 27k vehicles next year….announced by Lucid C-suite

Mmm…not selling as we expected and we had that software and seat problem. Let’s continue producing so we can reach our stated goal. But how are you going to sell all those produced this year? We will give huge discounts. We have to reach our production goal.

Looks like we are spending too much. PIF wants us to cut expenses. Let’s continue producing to reach the number we stated. To cut costs, let’s fire some of our service techs and customer service personnel But that would affect customer satisfaction! Doesn’t matter, we HAVE to cut costs, and we HAVE to reach production goal! Only option we have is to cut service. We can’t reduce our production goal under any circumstances! Even if there is no demand and we have to give huge discounts to sell the vehicles. We have billions in cash! Only number that matters is reaching that 27k number!
 
Also let’s sell cars in states where we can’t reasonably service them and have one mobile van to cover 5 states!
 
Yeah PIF had to spend $55B on a sports video game and SIMs company:)
 
I think the main issue was that executive pay was tied to reaching certain milestones. Peter got a massive stock award for launching the air, the exec team got a bonus for launching gravity by the end of '24 and I'm sure there were production milestone awards as well. Now, most of the executive pay is tied to market cap growth (as it should be), not artificial deadlines that are met at the expense of the product being ready for showtime.
 
I think the main issue was that executive pay was tied to reaching certain milestones. Peter got a massive stock award for launching the air, the exec team got a bonus for launching gravity by the end of '24 and I'm sure there were production milestone awards as well. Now, most of the executive pay is tied to market cap growth (as it should be), not artificial deadlines that are met at the expense of the product being ready for showtime.
Yes anywhere you have consistent bad decisions, investigate the incentive structure first....
 
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