Anybody concerned with Lucid’s Financial Health

[nautchilous]

As a current touring reservation holder, I read all types news online about how Lucid is just blowing through whatever cash reserve they have and is losing money left , right and center. I am sure Lucid as a long term financial plan to be in business for the long term…Tesla went through the same growing pains couple years back .I am currently a Tesla model S owner and got alot heat heat from friends and family members For spending so much on a car especially on a new company who might not even make it…Well that’s what the internet is saying ….I know Saudi Arabia is supporting Lucid with their ever deep pockets…But for how long…..The last thing I want is a $100k paperweight sitting in my garage ….I know they have a great and superior product compared to what’s out in the market now…But what about the future? Anybody want to chime in with their input?
On a positI’ve note, I hope the stars and all the planets line up so that I can get an email from Lucid with a vin for my ordered Touring trim before the end of the year

 

[borski]

Nobody will be able to answer this for you, but Lucid looks financially healthy for the short term, and has many airs on order from Saudi, plus the PIF investment is heavily invested as well. I'm not too concerned, especially because in the worst case, due to their superior technology, they would be bought, not dead.

 

[nautchilous]

Nobody will be able to answer this for you, but Lucid looks financially healthy for the short term, and has many airs on order from Saudi, plus the PIF investment is heavily invested as well. I'm not too concerned, especially because in the worst case, due to their superior technology, they would be bought, not dead.

I thought as much bro…need To stay away from YouTube ….I was even contemplating waiting on the new Audi A6 Etron..But most dealers will probably add a premium to the actual Msrp…I refuse to pay over Msrp

 

[DJL]

Without a doubt, we are taking a risk buying the car and/or owning the stock. With that said, one must realize that life, itself, is a risk. I may die tonight in my sleep, get hit by a car tomorrow, or fall over dead from a heart attack or for some other reason.
What I did to get comfortable with the risk inhertent in buying Lucid (both the car and the stock) was conduct indepth research in making my decision to buy both.. This is such a unique car and such a unique company that I sleep well at night knowing that I have the AGT in my garage and stock in my portfolio. Plus, I have a hard time believing that the Saudis woud walk away from the company. In my opinion, they have too much invested in it. And not just their money, but they have announced that Lucid is at the center of their "green" future.
We are now wathcing Lucid making tremendous strides in production, construction of their plants, and upgrades in the car's software. Just today, I drove for the first time, my AGT with the new 2.12 software installed. It is simply amazing! The major problems with the first generation of the software are principlly addressed. Sure, there are still some very minor problems. and some folks would like to see this feature here instead of being there, but, from my experience, these are very minor or simply personal preferences. Lucid's software overnight went from the weakest in the market to one of, if not the top, software package for an EV.

Now, given my research and the current status of the economy, I strongly believe that Lucid should quickly piviot from the high end market (i.e., the Sapphire and Air GT) to the middle end of the market. WHile they should continue producing the high end cars, they need, I repeat, need, to quickly get the Pure out and then a lower cost model. Their SUV....well, I am not convinced that with a recession upon us, a expensive, high end SUV is what will capture the market by storm. However, this country has so much wealth, that there many be enough of a market to support it. However, I anxious for strong growth and reasonable profit margins. My fingers are crossed that the Saudi's evoke their option on the seoncd half of their 100,000 car agreement.

 

[HC_79]

they need, I repeat, need, to quickly get the Pure

I agree they need to get to the Pure but when a recession hits luxury car sales typically tank and I don’t think the Pure will be immune to this as even at an entry level it’s comes at a hefty price.

I think the SUV strategy will still be expensive first and move down the line. They have the biggest profit margin so when times are tough it makes sense to go with the higher profit margin products.

Keep in mind that the Model 3 nearly bankrupted Tesla so jumping to a lower cost car and produce en masse doesn’t necessarily mean you’ll survive because you’re outlaying tremendous amounts of cash on a much smaller profit margin.

 

[SDHacker]

For a bullish viewpoint on Lucid:

Does a good job explaining about cash burn in a capital intensive industry and how the 2Q statement showed big improvements. Also went into how Tesla, Rivian, and even Starbucks have or had shelf registrations. A lot of what Lucid is going through and people are panicked about are predictable and expected for a young car company.

 

[DJL]

I agree they need to get to the Pure but when a recession hits luxury car sales typically tank and I don’t think the Pure will be immune to this as even at an entry level it’s comes at a hefty price.

I think the SUV strategy will still be expensive first and move down the line. They have the biggest profit margin so when times are tough it makes sense to go with the higher profit margin products.

Keep in mind that the Model 3 nearly bankrupted Tesla so jumping to a lower cost car and produce en masse doesn’t necessarily mean you’ll survive because you’re outlaying tremendous amounts of cash on a much smaller profit margin.

I fully understand your logic regarding profit margins and it is sound. Especially since it is the wealthy who are least impacted by recessions. They will continue to buy. That is why I would like to see the Sapphire and AGT continue to be produced. I guess the same will be true with the SUV. I am just not a fan of big SUVs. My bias. I believe it will be the Pure that the Sauidis will mostly be buying, that is one of the reasons I am anxious for it to be built. That, and of course, it is the backbone of the reservations list that Lucid has.

 

[Smith1959]

They have a shelf registration for another $8 billion. Unless there is a big geopolitical event, which isn’t out of the question, they should be able to stay liquid while they ramp production. The car is worth the risk, in my opinion, knowing worst case, they get purchased.

 

[DolphinTale]

I felt Lucid was an attractive target for Apple. They really want to build their car but no established auto maker wants to give up all rights just to have someone else’s car move down their assembly line. Lucid checks all the boxes, with the exception of the very deep pockets of Saudi involvement. Strictly a hypothetical but stranger things have happened. Musk buying Twitter… who’d a thought.

 

[AIR.LUCID]

As a current touring reservation holder, I read all types news online about how Lucid is just blowing through whatever cash reserve they have and is losing money left , right and center. I am sure Lucid as a long term financial plan to be in business for the long term…Tesla went through the same growing pains couple years back .I am currently a Tesla model S owner and got alot heat heat from friends and family members For spending so much on a car especially on a new company who might not even make it…Well that’s what the internet is saying ….I know Saudi Arabia is supporting Lucid with their ever deep pockets…But for how long…..The last thing I want is a $100k paperweight sitting in my garage ….I know they have a great and superior product compared to what’s out in the market now…But what about the future? Anybody want to chime in with their input?
On a positI’ve note, I hope the stars and all the planets line up so that I can get an email from Lucid with a vin for my ordered Touring trim before the end of the year

“Blowing through their cash” is in a large part buying and installing robots, etc. in AMP1. Investing in their future.

 

[Sterling]

As a current touring reservation holder, I read all types news online about how Lucid is just blowing through whatever cash reserve they have and is losing money left , right and center. I am sure Lucid as a long term financial plan to be in business for the long term…Tesla went through the same growing pains couple years back .I am currently a Tesla model S owner and got alot heat heat from friends and family members For spending so much on a car especially on a new company who might not even make it…Well that’s what the internet is saying ….I know Saudi Arabia is supporting Lucid with their ever deep pockets…But for how long…..The last thing I want is a $100k paperweight sitting in my garage ….I know they have a great and superior product compared to what’s out in the market now…But what about the future? Anybody want to chime in with their input?
On a positI’ve note, I hope the stars and all the planets line up so that I can get an email from Lucid with a vin for my ordered Touring trim before the end of the year

This is a great topic that every Lucid owner has some input about. However, at the end of the day, every stock purchase is an educated gamble and it's between you and your financial advisor whether investing in LCID is a good plan for your financial goals.

 

[AIR.LUCID]

This is a great topic that every Lucid owner has some input about. However, at the end of the day, every stock purchase is an educated gamble and it's between you and your financial advisor whether investing in LCID is a good plan for your financial goals.

This comment isn't about the stock. It's about the viability of the company.

 

[Tesla2.0]

I think Lucid just need to get their cars out on the streets to wow people to buy. Everyday more people wanted EVs are buying other brands and not knowing there are others more than just Tesla. Tesla already got the snowball effect rolling. Lucid just need to ramp up and let it be on street is the best marketing campaign.