Lucid’s financial viability

[Larry Harnett]

I am considering buying a Lucid Air vehicle. I love the car, but I’m concerned about the financial viability of the company and how to get vehicle serviced, spare parts, etc. if it goes out of business. How did others of you work through this issue?

Thanks,

 

[lnirenberg]

I wouldn't be, Prince Bonesaw is not to let $3B go down the tubes.

 

[socktucker]

lease it? You can buy at end

 

[fadooly]

It is not a concern
See how they are expending overseas
They won’t do that unless they know they can make it

 

[Saksak]

I’m not concerned. I just took delivery of my GDE almost a week ago. The Saudi backers have deep pockets, and worst case, they declare bankruptcy and get bought out. The technology and basic vehicle platform is too good to die, IMHO.

 

[L-Dude]

It is definitely a concern of mine. I would say the chances of Lucid going under are about 1 in 4, perhaps as high as 1 in 3. While some people say the PIF has deep pockets, the well of money isn't bottomless, and they are cutting investments in a number of areas.

I also question the idea that everything will be fine if they go bankrupt and someone buys their assets.

Personally, I wouldn't buy the car if I couldn't afford losing most of the value in the car in the next three years.

That's my opinion, and you know what they say about opinions...

 

[Buffalo Bob]

Personally, I wouldn't buy the car if I couldn't afford losing most of the value in the car in the next three years.

Just curious... Bankruptcy or not... Other than a true exotic, is their any EV which hasn't lost most of its value in its first three years?

Ooh... Wonder if Sapphire hasn't held up.

 

[chazglenn3]

Sapphire still costs almost $250K to buy used.

 

[L-Dude]

Just curious... Bankruptcy or not... Other than a true exotic, is their any EV which hasn't lost most of its value in its first three years?

Ooh... Wonder if Sapphire hasn't held up.

I'm talking about 90-95% of its value.

 

[Buffalo Bob]

I'm talking about 90-95% of its value.

Ah. I was literally being too literal.

 

[Leftlane]

Even with the PIF and the “unlimited” money supply - the Saudis still do cost-benefit analysis and if they are smart investors at all (which they are), they will stop funding a losing proposition at some point. Don’t fool yourself into thinking that they believe that Lucid will be the answer to help them transition away from a reliance on oil.

 

[Ampere]

I have received three estimates on the value of my 2023 Lucid Air Touring (in mint condition at 23,000 miles)) that I bought in February 2023. These are from Carmax, Carvana and a local dealer, so not a direct sale to another consumer, which probably would give me a somewhat higher value.. The Lucid has lost almost 2/3 of its value in three years. Of course, I bought it at Lucid's all-time high price. Three months after purchase Lucid lowered the price by $15K. The car has Surreal Sound Pro, but not any of the Dream Drive Pro/Premium packages.

 

[victoryroad]

I plan to keep my AGT for a long time and am not surprised at the resale values. Yes, our Lucid's have suffered greater than normal depreciation for high end cars. Will the Saudi PIF withdraw and book a loss for what is to them a small investment that surely was viewed as a long term proposition? Maybe, but it is my understanding that should the company fail it is legally obligated to support the cars with service, parts, etc for ten years, and I stand corrected if that is not the case.

 

[fadooly]

It is a extremely difficult to build a car manufacturing company and with the Chinese going for all markets with low prices it has become even harder
And the saudis know it is going to take at least a decade for Lucid to stand up in its own

Tesla is a great example of our modern days

I was at lucid main studio in Riyadh about a month ago and the investment by Lucid is huge

There is a big push for Saudi Made products and Lucid is part of that and it is part of Saudi Vision 2030

I heard rumors that PIF is partnering with BYD to open battery manufacturing plant in Saudi at an automotive cluster that will supply Lucid, CEER and Hyundai

 

[tmichael]

There are no guarantees in life. Many of us are paying for something (lease or buy) that could potentially be worthless at some point. But, we're going to enjoy the ride (literally!). All my lease money is down the drain in 35 months. If Lucid doesn't exist, it will be a shame - I hope they are. If they aren't, they will certainly have taught the industry new manufacturing design and methods.

Dream Ahead!

 

[victoryroad]

It is a extremely difficult to build a car manufacturing company and with the Chinese going for all markets with low prices it has become even harder
And the saudis know it is going to take at least a decade for Lucid to stand up in its own

Tesla is a great example of our modern days

I was at lucid main studio in Riyadh about a month ago and the investment by Lucid is huge

There is a big push for Saudi Made products and Lucid is part of that and it is part of Saudi Vision 2030

I heard rumors that PIF is partnering with BYD to open battery manufacturing plant in Saudi at an automotive cluster that will supply Lucid, CEER and Hyundai

Precisely on point. The fact that my 2023 Lucid is still, I believe, in a technologically leading position among domestic EVs available is significant. To me Lucid will continually improve around enduring design features and will optimize driving dynamics with newer models, much like what Porsche has done for decades. A bold assertion, but Lucid is a car company not a computer on wheels company so the driving experience in all aspects is its primary focus. Sure the learning curve on UI has been steep but OTAs have delivered an enhanced experience since the Air's launch. Moreover, AI will likely be applied deliberately, which means slowly and will improve our experience further. It may also offer physical enhancements, like the control module it released last year, for example. Finally, I never have bought a car as an investment or garage queen, but have driven them daily and do not expect to recoup much of the purchase price upon sale.

 

[pjdcorp]

I’m not concerned. I just took delivery of my GDE almost a week ago. The Saudi backers have deep pockets, and worst case, they declare bankruptcy and get bought out. The technology and basic vehicle platform is too good to die, IMHO.

Agreed, the technology has serious value to someone.

 

[AirDoll]

Wasn’t worried about in 2020 when I ordered it, wasn’t worried in 2022 when I got it, and not worried now three plus years into ownership and still believe it’s a hell of a car with the best engineering.

 

[TahoeMichael]

I'm intending to buy a Gravity. My personal risk tolerance leads me to conclude that it is sensible to purchase via a three year lease, even though I normally buy cars for cash and keep them for many years. Leasing limits my financial exposure to roughly half the purchase value of the vehicle, and I assume that in three years time there will be a lot more clarity on Lucid's future, particularly since they should be launching their 3rd vehicle in about a year. Given Lucid's current financial resources, I think that even a worst-case scenario don't result in them going bankrupt until 1.5 years from now.