Bill Alpert

[Neurio]

@blalpert - Why do you have a vendetta against Lucid?

Another hit piece today, which I can't actually read because I don't subscribe to Barron's (and never will).

Lucid’s Discounts Are a Bad Omen for Demand

Investors are laser-focused on whether Lucid's order book for electric vehicles shrinks again in the current quarter.

www.barrons.com

 

[CLTGT]

Let him know what you really think.

[email protected]
1.212.416.2742
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[email protected]

I would use the last option though as those comments might just make it to the Editor.

 

[MoniputerLM]

@blalpert - Why do you have a vendetta against Lucid?

Another hit piece today, which I can't actually read because I don't subscribe to Barron's (and never will).

Lucid’s Discounts Are a Bad Omen for Demand

Investors are laser-focused on whether Lucid's order book for electric vehicles shrinks again in the current quarter.

www.barrons.com

I can't read the article and not defending the author but the title "Lucid Is Offering Discounts to Sell Its EVs. Why That Could Signal a Bigger Problem", I actually wondered the same thing.

 

[idiot900]

I can read it apparently via my WSJ account. The article says pretty much that Lucid is offering discounts on GTs in a few forms, which suggests the market is saturated.

• Pre-June pricing on non-finalized GT orders
• A subsidized interest rate on post-June GT pricing
• Employee discount that results pretty much in pre-June pricing

It also says that the market price of used GTs is not as high as it should be, also signaling a saturated market. While Bill Alpert's opinion is clear, the facts he relies on don't seem wrong to me.

My response would be that this is not a surprise. The Air is a niche product, especially in GT trim. The market for a $139k/$155k sedan (as opposed to SUV) even before the pandemic was already quite small. The real question to me is not even how many Pures will the market want, but how many Gravity SUVs. (Gravities? Gravitys?)

 

[MoniputerLM]

I can read it apparently via my WSJ account. The article says pretty much that Lucid is offering discounts on GTs in a few forms, which suggests the market is saturated.

• Pre-June pricing on non-finalized GT orders
• A subsidized interest rate on post-June GT pricing
• Employee discount that results pretty much in pre-June pricing

It also says that the market price of used GTs is not as high as it should be, also signaling a saturated market. While Bill Alpert's opinion is clear, the facts he relies on don't seem wrong to me.

My response would be that this is not a surprise. The Air is a niche product, especially in GT trim. The market for a $139k/$155k sedan (as opposed to SUV) even before the pandemic was already quite small. The real question to me is not even how many Pures will the market want, but how many Gravity SUVs. (Gravities? Gravitys?)

So why did Lucid spend time and money developing the Saphire? Seems like getting the Gravity out is a higher priority??

 

[Bunnylebowski]

I can't read the article and not defending the author but the title "Lucid Is Offering Discounts to Sell Its EVs. Why That Could Signal a Bigger Problem", I actually wondered the same thing.

It’s hardly a discount as they’d just be offering employees the car for a similar price I paid except without the $7500 tax credit so actually more expensive and the employee discount is a bad deal as it’s taken out of their paycheck. ALL used car prices are going down, not just Lucid. The extreme bias against Lucid only when it’s just under the same market pressures all automakers are is disingenuous and malicious. I also don’t think it’s an unreasonable business practice to try and woo non-confirmed reservations as they are likely from people who reserved multiple cars, smart move to dangle some money to trigger the instant-gratification impulse….which is something ALL automakers do, oftentimes in the past with lower APR than Lucid is offering. Given we’re sliding down the hill into a recession I think the article is describing a forward thinking business approach even though Alpert wants to feed the DOOM.

 

[idiot900]

The extreme bias against Lucid only when it’s just under the same market pressures all automakers are is disingenuous and malicious.

This is an opinion piece ("Barron's Take"). Like all opinion pieces, even those you and I would agree with, it is biased by definition. Their reason for existence is to drive ad impressions. We'll enjoy our cars (mine when it arrives) no matter what Alpert writes.

 

[idiot900]

So why did Lucid spend time and money developing the Saphire? Seems like getting the Gravity out is a higher priority??

The Sapphire is clearly a halo car and just for marketing. They'll sell very few, and I'd be shocked if they made any money on it.

 

[MoniputerLM]

The Sapphire is clearly a halo car and just for marketing. They'll sell very few, and I'd be shocked if they made any money on it.

That's my point. Seems like an unnecessary diversion for a startup.

 

[Bunnylebowski]

That's my point. Seems like an unnecessary diversion for a startup.

Lucid can only do one thing at a time? The car has generated nothing but dropped jaws and positive press, not to mention being the new pinnacle of EV sedan engineering. Yeah terrible idea!

 

[hitmanray]

That's my point. Seems like an unnecessary diversion for a startup.

I'm not sure any halo cars are money makers these days. But it does a lot for brand awareness which is absolutely key for a startup. And honestly, it doesn't seem like much of a stretch to produce. I don't think it's like Porsche's GT division or Mercedes AMG where there are a ton a new panels and differing specs throughout the vehicle. Sapphire looks mostly the same underpinnings as the mass market models.

As far as the Barron's article, opinion pieces are just that. But perhaps this will get someone else who wasn't considering an Air to try and grab one at a bargain. Ultimately the whole car market is softening and the high end vehicles are going to be hit hardest.

 

[MoniputerLM]

Lucid can only do one thing at a time? The car has generated nothing but dropped jaws and positive press, not to mention being the new pinnacle of EV sedan engineering. Yeah terrible idea!

I stand by my opinion.

 

[joec]

I lived through the "beleaguered" years of Apple in the press. This is old hat.

At this point, the media is nothing more than a vehicle for driving stock prices up and down for speculators. What it says about actual companies is often completely disconnected from anything meaningful, unless you are a day trader.

 

[Mr_rhythm]

The Sapphire is a shot across the bow to Tesla and will further cement Lucid in the performance vehicle segment. I think the initial specs planned to have tri-motor setup and I'm sure the Air was built knowing it was coming. Producing it creates far less overhead than creating a whole new vehicle, but we know those are already well under way, too. Were they need more people is in the service world.

 

[Bobby]

I wonder if he’s ever driven a Lucid.

 

[Drendino]

I wonder if he’s ever driven a Lucid.

I wonder if he directly or indirectly has short positions in Lucid, or if he has investments in some of Lucid’s competitors.

 

[AZLucidGuy]

My guess on this is that Lucid built a surplus of GT's which they have in stock prior to conversion to the Touring and Pure production.

Per the article....

"Some car shoppers received invitations from Lucid to revive orders they had let lapse. The company also offered a 10% discount.

“We would like to offer an opportunity to reinstate your order for a Lucid Air Grand Touring at your original legacy price of $139,000. Lucid Air GT are now starting at $154,000,” said an email viewed by Barron’s. “Depending on your configuration, you could expect to have a vehicle in the next few weeks.”

Lucid’s Discounts Are a Bad Omen for Demand

Investors are laser-focused on whether Lucid's order book for electric vehicles shrinks again in the current quarter.

www.barrons.com

 

[SDHacker]

My guess is that since these are supposedly 22s rather than 23s, these are cancellations since any cars manufactured just before the Tourings started would be 23s.

 

[Bunnylebowski]

I stand by my opinion.