Lucid Layoff

[MoniputerLM]

And keep the service centers and CS fully staffed too! Those folks are invaluable!

I would cut the entire Saphire group and focus on getting Gravity out. JMHO.

 

[Shuasha]

It's fun arguing with the reddit geniuses. The same guy posted the layoff story several times in different subreddits, claiming he used to work there and his relatives that still work there say Pure won't ship until 2024. Besides being wrong, his post history shows he's a perv racist (shocking!)

 

[chinesejpl]

One of the issues is that I am not sure how many buyers there are for luxury electric sedans at lucid's price range. In 2022, tesla sold 66k MS + MX, and I think MX outsold the S (according to Q4 about 55-60% MX), which means that they sold only about 26-29k MS globablly, and this includes china where lucid is not in. Being that Lucid is new, if they capture 10-20% of what tesla sells it means they can only sell 2.5-6k Airs, which isn't very many. MB sold 19k EQS cars globally and they are in China as well. Both Tesla and MB (and other legacy makers) have brand recognition, as well. It was easier for tesla to sell the luxury MS when it had no competitors at that price (i.e. sell luxury first to fund the more affordable models) but now with several competitors vying for a small piece of the pie, I think it's challenging.

Unfortunately, when you cut 18% of the workforce (i.e. almost 1 in every 5 employees), there will be cuts in every department, which I am sad/disappointed about. I think this will mean less frequent software updates for us owners and maybe less customer support.

I obviously want lucid to succeed, not just survive and I am generally happy with the car but I think it will struggle with volume. I hope I'm proven wrong though.

 

[blueice89]

Not doubling down but selling puts

The 7.50s ?

 

[Cosmo Cruz]

I don't care.

It's a fantastic car and I'd buy it anyway, right now, again, with no regrets. I'm likely going to buy another.

I can't come up with enough excuses to drive it....like right now, at 3am ... where can I drive ?

 

[thecodingart]

It's fun arguing with the reddit geniuses. The same guy posted the layoff story several times in different subreddits, claiming he used to work there and his relatives that still work there say Pure won't ship until 2024. Besides being wrong, his post history shows he's a perv racist (shocking!)

Oh yeah, that guy. The guy who literally won’t acknowledge that the Pure is literally in people’s hands

 

[blueice89]

My friend was part of the impacted he was at Lucid about 1.5 years Jira Admin and head up the IT support for engineers. Good people lost their jobs but I guess it’s the cost of doing business. That ends a lot of my connections in Lucid I am pretty sad.

 

[Psymac]

Not sure how these layoffs allow production to increase to fulfill existing Air orders, and also initiate production for the Gravity? Otherwise, does then the company goes private and the platform is bought by a legacy manufacturer?

 

[Miami_Lucid_Man]

Ultimately they’ve got to get the price down on the Pure to entice people. They don’t have enough brand recognition to solely exist at or near the 100k price point no matter how great the car is. I would say this even if the economy wasn’t shaky like it is now. They need to get into that low to mid 60k, I think, to get cars on the road, have people actually see them out and about in a big way, and compete with the numerous other EVs that are out or coming soon.

I am rooting for them and am an investor, but I gave up my legacy pure reservation ultimately because it was just a bit more than I wanted to spend and am doing another 3 year lease on a model 3 (begrudgingly).

 

[Lucken]

My one big reservation about Lucid is the question if the company survives. I've got 3 days left to place my order and I'd be lying if this thought didn't cross my mind. I'm not a baller by any means. I'm much more of a Ioniq 5N and buying used kind of a car. The lucid credit and legacy pricing is too good to pass up.

Money isn't cheap anymore and while the product is amazing. I'm worried about overall demand.

This news is sad, especially for those laid off. Part of my logic to be in no rush to get the car was both to get a product with fewer issues than existed when I placed my order and, to be brutally honest, to see where the company itself is going.

You can't objectively look at this latest news and see a rationale for some degree of pessimism. To be clear, I'm not going anywhere and I'm still at least 6 months away from my Pure delivery. I think (hope?) things will be clearer and in better focus by then. Fingers crossed for everyone.

 

[hydbob]

It is already 7.32. If I sell puts right now it would be Prob ITM less than 20% to hit that strike price. Example strike 6.5 Apr 6th for 8 cents, strike 6 Apr 21 for 14 cents. I just sold strike 6 Apr 21. 6k capital for 10 contracts. $140 max profit. 2.33% in 3 weeks.

Keep stock trading outta this thread!

 

[HariK]

Keep stock trading outta this thread!

Good point. It is easy to drift. I should have replied in the investment thread when the question was asked about stock in this thread.

 

[Sam6062]

One of the issues is that I am not sure how many buyers there are for luxury electric sedans at lucid's price range. In 2022, tesla sold 66k MS + MX, and I think MX outsold the S (according to Q4 about 55-60% MX), which means that they sold only about 26-29k MS globablly, and this includes china where lucid is not in. Being that Lucid is new, if they capture 10-20% of what tesla sells it means they can only sell 2.5-6k Airs, which isn't very many. MB sold 19k EQS cars globally and they are in China as well. Both Tesla and MB (and other legacy makers) have brand recognition, as well. It was easier for tesla to sell the luxury MS when it had no competitors at that price (i.e. sell luxury first to fund the more affordable models) but now with several competitors vying for a small piece of the pie, I think it's challenging.

Unfortunately, when you cut 18% of the workforce (i.e. almost 1 in every 5 employees), there will be cuts in every department, which I am sad/disappointed about. I think this will mean less frequent software updates for us owners and maybe less customer support.

I obviously want lucid to succeed, not just survive and I am generally happy with the car but I think it will struggle with volume. I hope I'm proven wrong though.

It will be interesting to see the Reservations # at the next EC. Most likely will end the # of new showroom only sites.
Tesla could not Justify their Plano TX store and had to close it a few years ago. I believe it barely lasted 2 years, if That.

Let’s hope they don’t cut service

 

[methrow25]

It will be interesting to see the Reservations # at the next EC.

In the last earnings call they announced that reservation numbers would no longer be announced.

"At the time we first started providing reservation, we have not started production or delivery, and we provided this figure as a proxy to estimate potential future revenue. With the progression of our business, we believe production and deliveries are a better representation of the progress of our business. And so going forward, we will no longer plan to provide an updated quarterly reservation number. However, we plan to continue to provide quarterly production and delivery figures shortly following the end of each quarter."

Transcript here (need an account) - https://seekingalpha.com/article/4580949-lucid-group-inc-lcid-q4-2022-earnings-call-transcript

 

[Lucken]

It will be interesting to see the Reservations # at the next EC. Most likely will end the # of new showroom only sites.
Tesla could not Justify their Plano TX store and had to close it a few years ago. I believe it barely lasted 2 years, if That.

Let’s hope they don’t cut service

I hope that doesn't mean they'll cut the one scheduled Service Center opening on L.I. scheduled for this spring. If they do, that may make me think about cancelling. I don't like the thought of my car being carted a number of states away for any significant service that can't be done by the mobile service van.

 

[Sam6062]

I hope that doesn't mean they'll cut the one scheduled Service Center opening on L.I. scheduled for this spring. If they do, that may make me think about cancelling. I don't like the thought of my car being carted a number of states away for any significant service that can't be done by the mobile service van.

I am simply speculating here because those are very expensive to open and staff.
I would they rather open a Service Center and not just a showroom like they have in Plano TX.

So I am hopeful that Service Center Opening will continue because that could be and IS their Strength right now.

They can’t give that over the other automakers and especially Tesla.

 

[NoseyReporter]

This was absolutely necessary. Is it the end of road? No way, but it is a necessary evil to make sure that Lucid survives. Who ends up on the short end of the stick... We'll know soon.

 

[Steveinarizona]

To me the question is where are these cuts coming from? Manufacturing? Sales? Marketing? Service? Right now Lucid seems to be struggling to provide quality service across the United States. Are they cutting back on this? Lucid could copy Tesla and close its press shop...that will probably account for something less than 0.5%.

 

[joec]

To me the question is where are these cuts coming from? Manufacturing? Sales? Marketing? Service? Right now Lucid seems to be struggling to provide quality service across the United States. Are they cutting back on this? Lucid could copy Tesla and close its press shop...that will probably account for something less than 0.5%.

"Our U.S. workforce will see reductions in nearly every organization and level, including executives." From Peter himself.

https://www.lucidmotors.com/media-room/message-from-ceo-peter-rawlinson

 

[joec]

Obviously, some departments will be cut more than others. But it seems like no area of the company will not be impacted.