Additional $1.5bn Commitment from PIF

[BobFM]

https://ir.lucidmotors.com/news-releases/news-release-details/lucid-group-inc-announces-public-investment-fund-commitment-15

 

[HC_79]

Lucid couldn't have a better partner in this current climate. I believe the PIF will keep funding them as needed until at least 2030 but fingers crossed Lucid start to rake in the $$$ when the mid-market model hits in 2026.

 

[marsarbu]

I think Lucid will need some other revenue streams fast, besides selling cars. Otherwise they will have to sell A TON of cars to be profitable, which is just not possible, given the high entry price, and the tinny reach they have. Just look at how long it took Tesla to become profitable.

I love Lucid but if they can't sell something else than cars as well, my guess is that in the next 2 years they will either fold or get acquired.

 

[hydbob]

I think Lucid will need some other revenue streams fast, besides selling cars. Otherwise they will have to sell A TON of cars to be profitable, which is just not possible, given the high entry price, and the tinny reach they have. Just look at how long it took Tesla to become profitable.

I love Lucid but if they can't sell something else than cars as well, my guess is that in the next 2 years they will either fold or get acquired.

Never underestimate how much money pride is worth to rich people. The PIF is going to prop Lucid up for many years just to keep manufacturing presence in the KSA.

 

[HC_79]

Never underestimate how much money pride is worth to rich people. The PIF is going to prop Lucid up for many years just to keep manufacturing presence in the KSA.

I agree Lucid is safe based on the PIF's committed investments on green projects until 2030. I don't understand how everyone believed that Lucid was going to get profitable off the Air or Gravity, it's completely unrealistic. Until they get to a high volume mid market model they will continue to be unprofitable. Alarm bells should only start going off if the mid-market model doesn't start selling in high volume in late 2026 early 2027

Lucid has been very upfront about this but seems everyone expected them to make a profit within 2 to 3 years of production whilst spending BILLIONS on building manufacturing plants. People need to readjust their expectations.

 

[RM-S8]

I agree Lucid is safe based on the PIF's committed investments on green projects until 2030. I don't understand how everyone believed that Lucid was going to get profitable off the Air or Gravity, it's completely unrealistic. Until they get to a high volume mid market model they will continue to be unprofitable. Alarm bells should only start going off if the mid-market model doesn't start selling in high volume in late 2026 early 2027

Lucid has been very upfront about this but seems everyone expected them to make a profit within 2 to 3 years of production whilst spending BILLIONS on building manufacturing plants. People need to readjust their expectations.

Also, if i remember correctly, it took Tesla (for a comparable reasons) 12-13 years to be profitable.

 

[HC_79]

Also, if i remember correctly, it took Tesla (for a comparable reasons) 12-13 years to be profitable.

People tend to leave that little nugget out when they compare Tesla to Lucid.

 

[Batteryman]

I think Lucid will need some other revenue streams fast, besides selling cars. Otherwise they will have to sell A TON of cars to be profitable, which is just not possible, given the high entry price, and the tinny reach they have. Just look at how long it took Tesla to become profitable.

I love Lucid but if they can't sell something else than cars as well, my guess is that in the next 2 years they will either fold or get acquired.

You really think 900 billion dollar PIF will let the best EV car company get acquired or bankrupt? The same company that built the first car manufacturing plant in the Middle East? You think they invested 8 billion just to give it away? Please explain. Am I missing something?

 

[Steveinarizona]

People tend to leave that little nugget out when they compare Tesla to Lucid.

And, as I recall, Tesla only got there because it was selling green credits to mainline manufacturers.

 

[HC_79]

You really think 900 billion dollar PIF will let the best EV car company get acquired or bankrupt? The same company that built the first car manufacturing plant in the Middle East? You think they invested 8 billion just to give it away? Please explain. Am I missing something?

I know right! Saudi just needs to raise the price of an oil barrel by $1 for a day and they’ll have the money they gave Lucid back and then some

The cash they’re giving Lucid is probably like $100 to us. It’s nothing for them and they’ve wasted billions on much worse things.

 

[marsarbu]

You really think 900 billion dollar PIF will let the best EV car company get acquired or bankrupt? The same company that built the first car manufacturing plant in the Middle East? You think they invested 8 billion just to give it away? Please explain. Am I missing something?

Wow 4 questions in one post, strong feelings this one must have Idk if you are missing something that's for you to discover. But the last time I talked to MbS, he was not very happy. Just last night he was throwing quite some expletives out there, totally unfit for a prince. I told him he cannot bail out now, 'cause I just leased my AGT. He was non-committal.

 

[xponents]

The cash they’re giving Lucid is probably like $100 to us. It’s nothing for them and they’ve wasted billions on much worse things.

Cough cough Neom

 

[HC_79]

Cough cough Neom

C’mon….. that concert venue built into the mountain does look pretty cool though