Lucid Announces $1.0B Revolving Credit Facility

[hydbob]

https://www.lucidmotors.com/media-room/lucid-announces-revolving-credit-facility

 

[joec]

https://www.lucidmotors.com/media-room/lucid-announces-revolving-credit-facility

So much for bankruptcy. I guess Lucid doesn't have to worry about money for a little longer.

 

[HC_79]

Seems Lucid has a pretty good relationship with Bank of America

 

[Tesla2.0]

In 2009, Daimler lent Tesla Motors $500M to avoid bankruptcy in exchange for 10% Tesla equity business for $50M. Elon bought 10% back for $780M 5 years later.

BOA gets Lucid $1B for no equity surrendering. Saudi Royal family has 1.7T rich networth and are VIPs to all the biggest US bank executives at high places.

Different scenarios what Elon would put it.

 

[Tesla2.0]

Elon may be richest entrepreneur in the world, but he needed Saudi to turn Tesla private which didn’t happen. Saudi Royal family is 8x of Elon’s wealth. They can easily run on any bank with their massive withdrawals. They are super VIP with any phone call, Lucid is their paradigm change pivot from oil which doesn’t happen overnight and has 8+ years timeline to follow.

 

[HC_79]

Elon may be richest entrepreneur in the world, but he needed Saudi to turn Tesla private which didn’t happen. Saudi Royal family is 8x of Elon’s wealth. They can easily run on any bank with their massive withdrawals. They are super VIP with any phone call, Lucid is their paradigm change pivot from oil which doesn’t happen overnight and has 8+ years timeline to follow.

"Funding secured."

The guy needs an ego check and was hoping Lucid would've done it but seems that opportunity has gone out the window......

 

[Tesla2.0]

"Funding secured."

The guy needs an ego check and was hoping Lucid would've done it but seems that opportunity has gone out the window......

Elon may buy out Twitter to turn into private.

Saudi can buy out BOA, Citi, JPM Chase, PNC, Wells Fargo all private at same time.

 

[noobzilla]

This news is good. Won't have to worry about Lucid going bankrupt.

 

[HC_79]

This news is good. Won't have to worry about Lucid going bankrupt.

Calm down , in the scheme of things I don’t think $1B is a lot when you see how much money they’re losing a quarter.

 

[noobzilla]

Calm down , in the scheme of things I don’t think $1B isn’t a lot when you see how much money they’re losing a quarter.

welp, time to panic again then

 

[Yugi]

Elon is afraid of Lucid and Rivian. These are here to stay.

 

[Bus Driver]

Elon is afraid of Lucid and Rivian. These are here to stay.

EEEHLOHHHN! needs to stop mouthing off like an eighth grader, and concentrate on building better quality cars, and hiring a real VP of Customer Relations, instead of trying to do the job himself, by giving it five minutes of his attention every year.

 

[noobzilla]

Calm down , in the scheme of things I don’t think $1B isn’t a lot when you see how much money they’re losing a quarter.

Oh just realized it's double negative so you mean $1B is a lot. I can relax again

 

[HC_79]

Oh just realized it's double negative so you mean $1B is a lot. I can relax again

Typo,” isn’t” should be “is” because I don’t think $1B is a lot. They have $5B that will run out in just over 12 months…….$1B isn’t going to save them from having to seek more money.

 

[Parachute Adams]

I say let's cut the ELON stuff-- if you're a shareholder, or an owner relying on the company servicing your car, you need confidence the company can survive--not to mention make a profit! Bark at Elon all you want, but it does nothing re. the LCID survival analysis. Many of us here won't blink if our Airs become memorabilia..and eventually razor blades.

But most of us are invested in the narrative --did we sign on to a pioneering company--or is Lcid another (very expensive) Petfood.com?

I think the survival of LCID depends on Capital (cue the Saudis); Manufacturing (hope the new folks are better than the ones they replaced); and Sales/Marketing (the ONLY product to date is an ultra-high-priced niche car, sales of which will never justify the capital invested/committed to date.

We can, and will, debate and disagree endlessly on these points..but hey...thats why we keep tuning in...right?

 

[noobzilla]

Typo,” isn’t” should be “is” because I don’t think $1B is a lot. They have $5B that will run out in just over 12 months…….$1B isn’t going to save them from having to seek more money.

/panic

 

[Tesla2.0]

Yes, somewhere I read and took out my calculator, based on last quarter it takes $680k to yield 1 Air (DE or GT) last quarter. They now have 4000+ employees including my cousin work in the HQ before IPO. That’s a lot of service centers and show rooms and staffs they spawned up on top of Arizona plant expansion and Saudi new plant. At this expansion rate, they may need to be 6000+ employees next year. Are they concerned of spending? Sure they are. Are they concern of the production quality? Of course way more than Tesla and piled up in parking lot in Bear’s drone video. While Elon is obsessed with UX, Rawlinson is obsessed of redefining luxury in EV, they are teething and needs solid reputation.

For all of you already got your Lucid Air, consider amount of attention and manpower they put in, it’s way above and worth the price.

 

[LCIDdreams]

In 2009, Daimler lent Tesla Motors $500M to avoid bankruptcy in exchange for 10% Tesla equity business for $50M. Elon bought 10% back for $780M 5 years later.

Surely that describes a stock purchase, not a loan?

Assuming it was a purchase of 10% of the company and Daimler had kept their 10% stake rather than selling back, their $500M investment would be worth $64B now.

 

[Tesla2.0]

Surely that describes a stock purchase, not a loan?

Assuming it was a purchase of 10% of the company and Daimler had kept their 10% stake rather than selling back, their $500M investment would be worth $64B now.

500M with interest + stipulation of 50M for 10% of company.
Tesla paid back loan in 5 years and Elon bought back 10% for 780M.
Win/win for everyone!

 

[LCIDdreams]

500M with interest + stipulation of 50M for 10% of company.
Tesla paid back loan in 5 years and Elon bought back 10% for 780M.
Win/win for everyone!

Ah- got it, thanks!

A good deal for Daimler and Tesla, although if they didn’t sell back their 10% stake ($50M in) but rather held it would be even better . I wonder what else might have played out differently if Daimler retained an ownership stake? Perhaps better build quality for Tesla and faster move to electrification for Mercedes.