LCID 2021 Q4 Earnings

[SaratogaLefty]

How about he go to the local carpet store and ask for some rolls to deliver the cars he's got sitting on the lot before looking at doing another trim

What I found especially interesting on the call just now was that Peter said the "Fit and Finish" problems were primarily due to commodity purchases, specifically glass and carpet. He went on to say they are now delivering GT models and will complete delivery of the Dream models once they resolve the remaining commodity problems. Since the glass is the same on both models that implies the problem is with the Santa Monica carpeting.

 

[SaratogaLefty]

There was one moment that I found disturbing because I feel the Lucid team is not being completely honest. The emphasized several times that the supply chain issues are in commodity parts such as floor mats and window glass. Fair enough. But one analyst asked when they would be done with Dream Editions and start delivering the Grand Touring. Rawlinson said that they are already delivering Grand Touring, but the rest of the Dream Editions are waiting on parts. Is the floor mat or glass different from the two models? I don't think you can have it both ways. Perhaps it is the wheels, or the motors that is causing the issue. Wheels I guess would be a commodity, but the motor is not what I'd call a commodity part. Sounded fishy to me.

The Santa Monica carpeting is unique.

 

[Neurio]

There was one moment that I found disturbing because I feel the Lucid team is not being completely honest. The emphasized several times that the supply chain issues are in commodity parts such as floor mats and window glass. Fair enough. But one analyst asked when they would be done with Dream Editions and start delivering the Grand Touring. Rawlinson said that they are already delivering Grand Touring, but the rest of the Dream Editions are waiting on parts. Is the floor mat or glass different from the two models? I don't think you can have it both ways. Perhaps it is the wheels, or the motors that is causing the issue. Wheels I guess would be a commodity, but the motor is not what I'd call a commodity part. Sounded fishy to me.

It's the carpet, clearly. Santa Monica unique to DE

 

[SaratogaLefty]

It's the carpet, clearly. Santa Monica unique to DE

Ok another couple of items to closely inspect at delivery.

 

[Dortreo]

It's the carpet, clearly. Santa Monica unique to DE

Is there anything unique to it besides color?

 

[Sandvinsd]

Rawlinson said that they are already delivering Grand Touring, but the rest of the Dream Editions are waiting on parts. Is the floor mat or glass different from the two models?

Yes. The Santa Monica interior (carpet) is unique to the Dreams.

 

[Sandvinsd]

Is there anything unique to it besides color?

The wheels are different, but Peter did not mention wheels. The glass would be the same.

 

[Lucken]

I now sincerely doubt I'll see the Pure in 2022. If that's the case, I'll more than likely bow out. There will be many exceptionally good EVs coming out in the luxury EV space and I'd be lying if I said I wasn't worried about Lucid's future.

 

[Sandvinsd]

I now sincerely doubt I'll see the Pure in 2022. If that's the case, I'll more than likely bow out. There will be many exceptionally good EVs coming out in the luxury EV space and I'd be lying if I said I wasn't worried about Lucid's future.

So based on Average Sales price numbers and GT>T in reservations (per Peter's comment), one can estimate 5600 GT + 5600 AT = 11,200 cars before one can do the Pure. Likely 14k Pure reservations to make the math work. If they can hit their lowered numbers then they 'should' be producing the Pure in December. Gravity is pushed to 1H-2024

 

[Bauer]

Has anyone put the CarPlay answer through a decoder? Always thought it just a matter of time.

 

[SaratogaLefty]

Has anyone put the CarPlay answer through a decoder? Always thought it just a matter of time.

What "CarPlay answer? I didn't hear any mention of it on the call??

 

[HC_79]

At least from a battery and chip standpoint it seems they're in good standing as mentioned on the call. Kind of annoying for those Dream reservation holders that it was fricken carpet that held up the deliveries.

 

[Bauer]

I could be wrong, was in the grocery store. He was asked about Apple integration and said he got the question all the time. Then he switched to a foreign language. After that he talked about them being a software company and it didn’t sound good.

 

[SaratogaLefty]

I could be wrong, was in the grocery store. He was asked about Apple integration and said he got the question all the time. Then he switched to a foreign language. After that he talked about them being a software company and it didn’t sound good.

No he was asked about the rumors regarding the “Apple Car”. A really worthless question that had nothing to do with CarPlay.

 

[Bauer]

No he was asked about the rumors regarding the “Apple Car”. A really worthless question that had nothing to do with CarPlay.

Got it, thanks for the clarification, it was hard for me to get it all.

 

[Rob Stark]

The people claiming Lucid has a demand problem are laughably wrong.

Cars in the field will generate demand. Each Air owner will show his car on average to four other people that can afford a Lucid. Once people know for a fact they can get an Air within 90 days of order that will generate more demand. Ditto for 60 and 30 day threshold. When Lucid studios have 4-6 Airs in stock for immediate delivery for customers that are not too picky on spec that will generate more demand.

Then there is advertising to generate demand. It is stupid to try to generate more demand when you are booked solid for ~18 months. Gravity demand will be 3x-4x Air demand. The auto business isn't for the timid. Or stupid.

Being an investor, owner,and/or fan of Lucid doesn't necessitate you slander Tesla. Tesla, Lucid, Rivian, Fisker etc are frenemies. Both competitors and collaborators. Both need to push in the same direction for greater EV adoption, passing laws on direct sales, and greater economy of scale for the entire EV industry.

People claiming German competitors will be able to smoothly ramp up 400 EPA mile plus BEVs to saturate demand are also laughably wrong.

 

[MidwestLucidDude]

The people claiming Lucid has a demand problem are laughably wrong.

Cars in the field will generate demand. Each Air owner will show his car on average to four other people that can afford a Lucid. Once people know for a fact they can get an Air within 90 days of order that will generate more demand. Ditto for 60 and 30 day threshold. When Lucid studios have 4-6 Airs in stock for immediate delivery for customers that are not too picky on spec that will generate more demand.

Then there is advertising to generate demand. It is stupid to try to generate more demand when you are booked solid for ~18 months. Gravity demand will be 3x-4x Air demand. The auto business isn't for the timid. Or stupid.

Being an investor, owner,and/or fan of Lucid doesn't necessitate you slander Tesla. Tesla, Lucid, Rivian, Fisker etc are frenemies. Both competitors and collaborators. Both need to push in the same direction for greater EV adoption, passing laws on direct sales, and greater economy of scale for the entire EV industry.

People claiming German competitors will be able to smoothly ramp up 400 EPA mile plus BEVs to saturate demand are also laughably wrong.

Agreed. Lucid is similar to the early days of Tesla. Once people see them on the streets regularly and get a chance to talk to an owner the demand will take off even more. The near term issue is cash burn. Lucid is spending a lot of cash to ramp up production. During the call Lucid also said that the Gravity iSUV is pushed out to early 2024. With supply shortages and the need to spend more to ship and maintain inventory, investors will worry about how long it will take to become cash flow positive.

 

[Yugi]

I also believe demand won’t be a problem as they deliver more vehicles to customers. Important thing is learning from the mistakes and scaling effectively. This will help Lucid to produce and deliver lower end future models to more customers.

 

[Sandvinsd]

Positive comments from Bank of America -

Looking ahead, Bank of America is still positive on Lucid (NASDAQ:LCID).

"Our Buy rating on LCID is predicated on our view that the company is one of the most attractive among the universe of start-up electric vehicle automakers and also a relative competitive threat to the universe of incumbent automakers. This is due to LCID’s innovative/competitive electric powertrain technology (endorsed by its battery pack supplier status in Formula E), interesting/attractive product (specifically in first model Air sedan and second concept model Gravity SUV), arguably intangible value in the form of the Lucid brand (targeting next-generation “post-luxury” consumer values), direct-to-consumer sales and service strategy to manage the customer experience, and a greenfield/clean-sheet approach to manufacturing electric platform/ vehicles."

LCID is expected to be a beneficiary of the automotive industry evolution towards electrification, even as the competitive landscape among both incumbents and entrants becomes increasingly fierce.

Bank of America reiterated a Buy rating on Lucid (LCID) and price objective of $60.

 

[hydbob]

Positive comments from Bank of America -

Looking ahead, Bank of America is still positive on Lucid (NASDAQ:LCID).

"Our Buy rating on LCID is predicated on our view that the company is one of the most attractive among the universe of start-up electric vehicle automakers and also a relative competitive threat to the universe of incumbent automakers. This is due to LCID’s innovative/competitive electric powertrain technology (endorsed by its battery pack supplier status in Formula E), interesting/attractive product (specifically in first model Air sedan and second concept model Gravity SUV), arguably intangible value in the form of the Lucid brand (targeting next-generation “post-luxury” consumer values), direct-to-consumer sales and service strategy to manage the customer experience, and a greenfield/clean-sheet approach to manufacturing electric platform/ vehicles."

LCID is expected to be a beneficiary of the automotive industry evolution towards electrification, even as the competitive landscape among both incumbents and entrants becomes increasingly fierce.

Bank of America reiterated a Buy rating on Lucid (LCID) and price objective of $60.

Damn right!