$1.5 billion raised mostly from Saudi PIF

[AZLucidGuy]

This shows that 1) Lucid is NOT going bankrupt and 2) the Saudi PIF has doubled down on their investment showing confidence in Lucid.

I see this as a good thing for both LCID investors and Lucid Air owners (I am both).

EV maker Lucid closes $1.5 billion raise from the Saudi public wealth fund and other investors

Electric vehicle maker Lucid Group said it has completed a planned $1.5 billion equity offering.

www.cnbc.com

 

[Pwmac]

If my math is right it seems like average cost is around $10.67/share. That is surprising given the current price and like you said it's good to see the PIF is still putting money down.

 

[thecodingart]

This is fantastic news, and Lucid easily has a 3 year runway to scale.

 

[HariK]

This shows that 1) Lucid is NOT going bankrupt and 2) the Saudi PIF has doubled down on their investment showing confidence in Lucid.

I see this as a good thing for both LCID investors and Lucid Air owners (I am both).

EV maker Lucid closes $1.5 billion raise from the Saudi public wealth fund and other investors

Electric vehicle maker Lucid Group said it has completed a planned $1.5 billion equity offering.

www.cnbc.com

I am both owner and investor too but dilution causes stock price to go low right now. As investors we may have to wait for 3 years or more for the earnings per share to justify a stock price of even half the peak 55. Also we know that as the sales increase in a big country like ours, there is added cost of service centers needed to compete with others in this segment. That cuts into the revenue.

 

[digiboxer]

If my math is right it seems like average cost is around $10.67/share. That is surprising given the current price and like you said it's good to see the PIF is still putting money down.

Your math is right---and it looks like the Shorts are scrambling to cover in after-hours trading.

It would be interesting to see the deal memo--should we infer that the new cash plus the $3.5B in the bank will add up to enough to carry L to cash-flow-positive? Or did they do a "small" amount now because the public shares are so low....?

 

[HariK]

Your math is right---and it looks like the Shorts are scrambling to cover in after-hours trading.

It would be interesting to see the deal memo--should we infer that the new cash plus the $3.5B in the bank will add up to enough to carry L to cash-flow-positive? Or did they do a "small" amount now because the public shares are so low....?

6% swing after hours in this stock with very low volume of trading is just 40 cents at the current price. Wait for the market to close tomorrow and see. This stock is really for longer term believers and not for traders.

 

[AZLucidGuy]

I am both owner and investor too but dilution causes stock price to go low right now. As investors we may have to wait for 3 years or more for the earnings per share to justify a stock price of even half the peak 55. Also we know that as the sales increase in a big country like ours, there is added cost of service centers needed to compete with others in this segment. That cuts into the revenue.

Agreed. LCID is a long term investment. It it hits “half its peak” this shareholder will be getting a Sapphire…

 

[HariK]

This shows that 1) Lucid is NOT going bankrupt and 2) the Saudi PIF has doubled down on their investment showing confidence in Lucid.

I see this as a good thing for both LCID investors and Lucid Air owners (I am both).

EV maker Lucid closes $1.5 billion raise from the Saudi public wealth fund and other investors

Electric vehicle maker Lucid Group said it has completed a planned $1.5 billion equity offering.

www.cnbc.com

Lucid Shares Outstanding 2020-2022 | LCID

Lucid shares outstanding history from 2020 to 2022. Shares outstanding can be defined as the number of shares held by shareholders (including insiders) assuming conversion of all convertible debt, securities, warrants and options. This metric excludes the company's treasury shares...

www.macrotrends.net

Look at the dilution since IPO and the impact on earnings per share and the PE ratio. Look at the PE ratio of TSLA now 45. Now imagine the revenue needed to justify a certain stock price. Lot of patience is needed. Those who believe in value of the car and the technology should buy and hold and traders can exit now. Thank you.

 

[digiboxer]

6% swing after hours in this stock with very low volume of trading is just 40 cents at the current price. Wait for the market to close tomorrow and see. This stock is really for longer term believers and not for traders.

Agree, but I had decided (arbitrarily) on a buy-in point of 5.50--6.00. So Im wondering whether this event breaks the brutal trend if the last 2 months...and if I need to recalibrate or pass on investing.

I continue to think the market is spooked by the shrinking order book, not the financing (which the Saudis were always going to lead, IMO). If there is lukewarm demand for the Air...there's nothing behind it for more than a year..and meanwhile warranty work goes up, up and away with more deliveries...

 

[HariK]

Agree, but I had decided (arbitrarily) on a buy-in point of 5.50--6.00. So Im wondering whether this event breaks the brutal trend if the last 2 months...and if I need to recalibrate or pass on investing.

I continue to think the market is spooked by the shrinking order book, not the financing (which the Saudis were always going to lead, IMO). If there is lukewarm demand for the Air...there's nothing behind it for more than a year..and meanwhile warranty work goes up, up and away with more deliveries...

I really don't think the market is spooked by the order book. It is all about production matching the demand before competition heats up.

 

[Babyrocko1908]

Makes me feel great loading up at sub $8 over the last 2 weeks. I'm averaging down, down, down!

 

[AZLucidGuy]

Agree, but I had decided (arbitrarily) on a buy-in point of 5.50--6.00. So Im wondering whether this event breaks the brutal trend if the last 2 months...and if I need to recalibrate or pass on investing.

I continue to think the market is spooked by the shrinking order book, not the financing (which the Saudis were always going to lead, IMO). If there is lukewarm demand for the Air...there's nothing behind it for more than a year..and meanwhile warranty work goes up, up and away with more deliveries...

There is a lot of smart money in LCID at higher prices. I think it is questionable if it will ever get into the $5.50 range.

 

[digiboxer]

There is a lot of smart money in LCID at higher prices. I think it is questionable if it will ever get into the $5.50 range.

I wish I knew the def of "smart money"!...all the Wall Street firms that lined up for the IPO and are now at 30%? The hedge fund short sellers who might get squeezed by this announcement?

This has been my world for 40 years and I've have seen a lot of people I knew to be smart losse a lot of money---and a lot I'm positive are dumb make a lot of money.

It's interesting the Saudis did a deal at a huge premium to market (like +40%??). I get that the deal has to have been in the works for weeks, and they didn't want to look like vultures...but they could have pegged the pricing to today's close and come out way ahead

I'll be curious to see the big volume (40mm shares) come in tomorrow. The balance sheet issues seem to be stable now for 2 years...but the P&L is a mess--shrinking orders/huge warranty expense.

Maybe Jim Cramer is right "too dangerous...stay away"...

 

[SaratogaLefty]

If the order book is your concern remember they signed a deal with the Saudis to deliver thousands of cars over the next ten years.

 

[AZLucidGuy]

I wish I knew the def of "smart money"!...all the Wall Street firms that lined up for the IPO and are now at 30%? The hedge fund short sellers who might get squeezed by this announcement?

This has been my world for 40 years and I've have seen a lot of people I knew to be smart losse a lot of money---and a lot I'm positive are dumb make a lot of money.

It's interesting the Saudis did a deal at a huge premium to market (like +40%??). I get that the deal has to have been in the works for weeks, and they didn't want to look like vultures...but they could have pegged the pricing to today's close and come out way ahead

I'll be curious to see the big volume (40mm shares) come in tomorrow. The balance sheet issues seem to be stable now for 2 years...but the P&L is a mess--shrinking orders/huge warranty expense.

Maybe Jim Cramer is right "too dangerous...stay away"...

This deal suggests to me that the Saudis do not want Lucid to fail. That sentiment is a huge boost for all things Lucid — investors, owners, employees and probably most importantly potential customers.

There just is not much of a market for cars over $150K. Lucid has in my view done very well tapping onto that market in year 1.

Key is going to be the Air Pure, Gravity (hopefully they build a “low end” version) and the next smaller platform which will hopefully do for Lucid what the Model 3/Y did for Tesla.

 

[quantum]

I wish I knew the def of "smart money"!...all the Wall Street firms that lined up for the IPO and are now at 30%? The hedge fund short sellers who might get squeezed by this announcement?

This has been my world for 40 years and I've have seen a lot of people I knew to be smart losse a lot of money---and a lot I'm positive are dumb make a lot of money.

It's interesting the Saudis did a deal at a huge premium to market (like +40%??). I get that the deal has to have been in the works for weeks, and they didn't want to look like vultures...but they could have pegged the pricing to today's close and come out way ahead

I'll be curious to see the big volume (40mm shares) come in tomorrow. The balance sheet issues seem to be stable now for 2 years...but the P&L is a mess--shrinking orders/huge warranty expense.

Maybe Jim Cramer is right "too dangerous...stay away"...

Never listen to Jim Cramer. He is just a blabber mouth. He is a big TSLA investor, of course he would say ignore Lucid. Cramer said sell TSLA when it was 22!! Many don't even know what a Lucid is. The product will speak for itself. Lucid expects to sell only 40-45k Airs a year. A majority of their sales will come from the SUV and smaller car coming in 2025. They will sell everything they produce. Once word of mouth gets out, it will be very popular among luxury buyers.

Also the Middle East EV sales will be dominated by Lucid- guess where all the money is???

Ignore the haters, especially Tesla fanboys spreading nastiness against Lucid, they are a dime a dozen. This company is here to stay!

 

[digiboxer]

If the order book is your concern remember they signed a deal with the Saudis to deliver thousands of cars over the next ten years.

Good point---I'd assumed those cars would be made in Saudi Arabia, and that plant is years away. Also that deal is a bit flimsy...."up tp" X'000 cars, etc.

 

[AZLucidGuy]

Never listen to Jim Cramer. He is just a blabber mouth. He is a big TSLA investor, of course he would say ignore Lucid. Cramer said sell TSLA when it was 22!! Many don't even know what a Lucid is. The product will speak for itself. Lucid expects to sell only 40-45k Airs a year. A majority of their sales will come from the SUV and smaller car coming in 2025. They will sell everything they produce. Once word of mouth gets out, it will be very popular among luxury buyers.

Also the Middle East EV sales will be dominated by Lucid- guess where all the money is???

Ignore the haters, especially Tesla fanboys spreading nastiness against Lucid, they are a dime a dozen. This company is here to stay!

I don't listen to Cramer. He's a fool. I would say do the opposite of whatever he is pushing.

 

[joec]

I don't listen to Cramer. He's a fool. I would say do the opposite of whatever he is pushing.

Generally speaking, you can make a lot of money by doing exactly this.

 

[HariK]

6% swing after hours in this stock with very low volume of trading is just 40 cents at the current price. Wait for the market to close tomorrow and see. This stock is really for longer term believers and not for traders.

Well! Look what happened today at close. Exactly the same as the closing price yesterday. I bought just 300 shares. As I said this kind of news and after market 6% swing has no real meaning. Real long term investors have seen the impact of dilution movies before. Remember the old saying Bulls and Bears can win but the Greedy Pigs get slaughtered trading.