As an owner, why are you investing in Lucid?

[L-Dude]

I see that some people who buy Lucid Airs/Gravities also buy the company's stock. When I decided to get a Lucid Air, I knew there was some risk the company might not survive as an ongoing concern, so I didn't want to double my risk by buying Lucid stock. If the company goes belly up, the car's value would plummet, and if the company failed I would lose my investment in their stock as well. This makes me wonder why so many Lucid car buyers also buy their stock. Doesn't this seem like a high-risk proposition? Just wondering what the thinking is on this.

 

[AirDoll]

For me it was because I’ve done my due diligence, and I truly believe in their product and commitment to their technology.

 

[Buffalo Bob]

Just wondering what the thinking is on this.

If you feel that way, I'm surprised you didn't lease...

 

[L-Dude]

If you feel that way, I'm surprised you didn't lease...

Ummm..thank you for the off-topic challenge due to my question. FWIW I did lease because of the heavy EV depreciation.

 

[segbrk]

Ummm..thank you for the off-topic challenge due to my question. FWIW I did lease because of the heavy EV depreciation.

Well then, why didn't you buy the stock if you didn't buy the car?

In all seriousness, the broad answer to your question is simply: either we're foolish or we're not investing enough relative to our net worth in either a car or a startup stock for it to be a sizable risk. Or both.

 

[AZAirGT]

For me it was because I’ve done my due diligence, and I truly believe in their product and commitment to their technology.

Totally agree. I'm sticking with Lucid for the long term.

 

[Gangreene]

I'm 70+ and have seen a lot of cars and car companies come and go. I own, not lease, my Air Pure, (paid cash) and I own Lucid stock. Why? Because I believe this is by far the best introduction vehicle of my life. There isn't anything close. As for the stock, I don't believe the Saudi PIF is run by idiots and they keep putting money into Lucid. You do you and have no regrets

 

[Buffalo Bob]

Ummm..thank you for the off-topic challenge due to my question. FWIW I did lease because of the heavy EV depreciation.

Sorry if you view it as off-topic, but since you leased, what risk were you worried about doubling? Were you thinking that Lucid might fail before the lease was even up?

 

[Buffalo Bob]

I'm 70+ and have seen a lot of cars and car companies come and go. I own, not lease, my Air Pure, (paid cash) and I own Lucid stock. Why? Because I believe this is by far the best introduction vehicle of my life. There isn't anything close. As for the stock, I don't believe the Saudi PIF is run by idiots and they keep putting money into Lucid. You do you and have no regrets

Interesting. I could have written the same paragraph. Same age range. Same model. Same cash purchase. Also a shareholder... largely due to air-cover by the Saudi PIF, who could have paid for their Lucid investment out of petty cash.

 

[L-Dude]

Sorry if you view it as off-topic, but since you leased, what risk were you worried about doubling? Were you thinking that Lucid might fail before the lease was even up?

I'm not worried about anything. I have no dog in this fight. I am interested in why people who bought the car also bought the company. Not sure what you're after here.

 

[Buffalo Bob]

I'm not worried about anything. I have no dog in this fight. I am interested in why people who bought the car also bought the company. Not sure what you're after here.

No worries. I agree that you have no dog in this fight, but I misinterpreted your writing as suggesting that you, along with the car/stock (or any one or combo thereof) owners, had something to lose... My bad.

 

[WildRide47]

I see that some people who buy Lucid Airs/Gravities also buy the company's stock. When I decided to get a Lucid Air, I knew there was some risk the company might not survive as an ongoing concern, so I didn't want to double my risk by buying Lucid stock. If the company goes belly up, the car's value would plummet, and if the company failed I would lose my investment in their stock as well. This makes me wonder why so many Lucid car buyers also buy their stock. Doesn't this seem like a high-risk proposition? Just wondering what the thinking is on this.

As some of you may remember, 3 years ago I posted on this forum that I bought 25,000 shares of LCID at 22, I sold 250 call options and it got called netting me a 12 point gain and +$300,000 profit. Paid a little less than 1/2 in taxes and bought an AGT with the rest. I initially kicked myself as the stock continued to climb to the high 50's. But then I noticed that there started to be a cancellations of the 30,000 original reservations, so I waited and did not go back in. I invested heavily in the stock because the range, looks, cornering, interior etc. was unequaled by any other EV. However, I believe that poor marketing, some bad press and more EV alternatives have changed the equation. That plus there was only a niche market for a car that initially cost over $100,000 led me to hold off on reinvesting. That does not mean I have ruled it out, but I am not yet convinced that Lucid will not continue to bleed money. Whether the mid sized EV "Earth" will take off is anybody's guess. Absolutely outstanding customer service and better quality control when the car leaves the factory is a necessity. Bad mouthing by dissatisfied owners will kill the brand in the long run. Lucid needs to get Consumer Reports, Edmunds and every other magazine to put this car on the top of their ratings and get the damn car in every major cities car shows. I can put up with some minor faults. My wife is the opposite. She expects minimal visits to service or otherwise wants to get rid of her car. Her present 2023 BMW i-4M50 and previous Lexus are good examples. The fit and finish of her i-4 is perfect and she has yet(after almost 3 years to bring it in for service because everything work perfectly. I'm not saying I expect Lucid to be at 100%, that is unrealistic but it certainly can do better than it has. Word of mouth and high visibility sells cars. I have never listened to any celebrity about buying a product because they get paid to hawk it. The money that they are paying Timothy C as ambassador could be better spent on quality control and on the other issues I have mentioned. Peter Rawlinson built a fantastic car, but the people responsible for software, marketing etc leave much to be desired.

 

[Batteryman]

As some of you may remember, 3 years ago I posted on this forum that I bought 25,000 shares of LCID at 22, I sold 250 call options and it got called netting me a 12 point gain and +$300,000 profit. Paid a little less than 1/2 in taxes and bought an AGT with the rest. I initially kicked myself as the stock continued to climb to the high 50's. But then I noticed that there started to be a cancellations of the 30,000 original reservations, so I waited and did not go back in. I invested heavily in the stock because the range, looks, cornering, interior etc. was unequaled by any other EV. However, I believe that poor marketing, some bad press and more EV alternatives have changed the equation. That plus there was only a niche market for a car that initially cost over $100,000 led me to hold off on reinvesting. That does not mean I have ruled it out, but I am not yet convinced that Lucid will not continue to bleed money. Whether the mid sized EV "Earth" will take off is anybody's guess. Absolutely outstanding customer service and better quality control when the car leaves the factory is a necessity. Bad mouthing by dissatisfied owners will kill the brand in the long run. Lucid needs to get Consumer Reports, Edmunds and every other magazine to put this car on the top of their ratings and get the damn car in every major cities car shows. I can put up with some minor faults. My wife is the opposite. She expects minimal visits to service or otherwise wants to get rid of her car. Her present 2023 BMW i-4M50 and previous Lexus are good examples. The fit and finish of her i-4 is perfect and she has yet(after almost 3 years to bring it in for service because everything work perfectly. I'm not saying I expect Lucid to be at 100%, that is unrealistic but it certainly can do better than it has. Word of mouth and high visibility sells cars. I have never listened to any celebrity about buying a product because they get paid to hawk it. The money that they are paying Timothy C as ambassador could be better spent on quality control and on the other issues I have mentioned. Peter Rawlinson built a fantastic car, but the people responsible for software, marketing etc leave much to be desired.

Well said, but I'm optimistic they will get there....I've been waiting for half a decade for them to fix software issues....damn that keyfob!

 

[nashvillelucid]

My thesis is that a lot of the negativity surrounding the stock stems from the original Spac. That period lead to valuations that made no sense. So a lot of investors from that time are very negative about the stock. And the obvious short sellers add to the negativity. And that leads to a share entry point that is fairly attractive. I’ve bought a smallish position in the $2-$3 range. This is a market cap similar to Lyft, but the sentiment surrounding similarly valued companies is more positive because they don’t have the overhang I mentioned above.

I also believe the Saudis don’t want their largest investment to die. So I believe the company will survive. If I’m wrong here, I believe the solution will be they sell the company for a recoup of cash.

And I believe we have some catalysts that will arrive over the next 1-4 years.

First an international point of manufacturing. I firmly believe the Saudis can use a lot of leverage to sell cars from this facility. Plus the cars are very nice and will attract buyers naturally. I also believe this factory may be able to take advantage of a cheaper supply chain directly out of China with no tariff or political barriers.

Second, I believe an SUV form factor is more attractive than a sedan, even if I prefer sedans. So I am confident this will lead to more sales than the current level.

Finally a new smaller version. I believe a lower priced, smaller model will be successful.

I don’t care about exact timing of any of this. But I believe each will happen and have reasonable levels of success. So I am willing to invest a moderate amount of money and wait to see if I’m right. I’m also very willing to sit through periods of volatility to try and reap rewards.

None of this is stock advice, just my personal investing thesis.