Lucid CFO Steps Down

[NoseyReporter]

Sherry was very well spoken. Her work history does show she doesn't tend to stay in one position very long. She clearly is ambitious and always looking for the next big thing.

 

[AZLucidGuy]

Sherry House received a severance package which leads me to suspect that she was likely asked to leave. More speculation, but that is usually how things work with severance. That said, I too liked Sherry's enthusiasm on the quarterly calls. But we have no idea what was actually going on behind the scenes. In retrospect, it appears that the initial pricing structure for the Air was unrealistically high. This was damaging to early sales and the perception that the Air is too expensive. The CFO pro forma projections were probably part of pricing. The lower end trims (Pure RWD) should have launched much earlier. I have no idea what role the CFO and projections had on those decisions, but perhaps (speculation again) these factored into the departure of Sherry House.

I hope that Lucid aggressively produces and sells a range of trims for Gravity EARLY in its production. Need a mix of entry price point trims shipping right away with the high end luxury trims. That would be my suggestion. The Pure RWD was way, way too late.

 

[Tâm]

Delisting is a nothing burger.....even the mighty solar king Enphase got delisted.

While it is true that delighting is not the end of the world but it might have some consequences such as lower stock price pressure as Index Funds are obligated to sell, and not buy, more LCID.

 

[NoseyReporter]

Sherry House received a severance package which leads me to suspect that she was likely asked to leave. More speculation, but that is usually how things work with severance. That said, I too liked Sherry's enthusiasm on the quarterly calls. But we have no idea what was actually going on behind the scenes. In retrospect, it appears that the initial pricing structure for the Air was unrealistically high. This was damaging to early sales and the perception that the Air is too expensive. The CFO pro forma projections were probably part of pricing. The lower end trims (Pure RWD) should have launched much earlier. I have no idea what role the CFO and projections had on those decisions, but perhaps (speculation again) these factored into the departure of Sherry House.

I hope that Lucid aggressively produces and sells a range of trims for Gravity EARLY in its production. Need a mix of entry price point trims shipping right away with the high end luxury trims. That would be my suggestion. The Pure RWD was way, way too late.

Was the severance mentioned in the press release? Or 10K? I didn't read the 10K yet.

 

[AZLucidGuy]

Was the severance mentioned in the press release? Or 10K? I didn't read the 10K yet.

From the 8-K...

"Ms. House will continue to receive her regular compensation through December 31, 2023, after which time the Company has agreed to provide Ms. House severance benefits under the Company’s Executive Severance Plan, subject to the terms and conditions thereof. In addition, subject to the terms of her separation agreement, Ms. House will receive a 2023 annual bonus of $215,000, accelerated vesting of 83,987 restricted stock units and 136,221 performance stock units, and $12,500 to cover tax preparation costs for 2023, and she will also be allowed to keep her company vehicle."

Inline XBRL Viewer

 

[Genghis]

Delisting is a nothing burger.....even the mighty solar king Enphase got delisted.

Not true. ETFs that have to balance their positions based on exchange compositions is a big thing each year. Look at Uber in the past week because they got included. Not disastrous, but definitely downward pressure ETF and retail who are rebalancing their positions.

 

[Tim-in-CA]

From the 8-K...

"Ms. House will continue to receive her regular compensation through December 31, 2023, after which time the Company has agreed to provide Ms. House severance benefits under the Company’s Executive Severance Plan, subject to the terms and conditions thereof. In addition, subject to the terms of her separation agreement, Ms. House will receive a 2023 annual bonus of $215,000, accelerated vesting of 83,987 restricted stock units and 136,221 performance stock units, and $12,500 to cover tax preparation costs for 2023, and she will also be allowed to keep her company vehicle."

Inline XBRL Viewer

Nice parachute