Lucid Motors CEO, Board Sued Over Alleged Misleading Production Claims

[Tim-in-CA]

Lucid Motors CEO, Board Sued Over Alleged Misleading Production Claims - EV

Electric vehicle maker Lucid Motors is facing a shareholder lawsuit that accuses CEO Peter Rawlinson and several current and former board members of misleading investors about the company’s ability to meet ambitious production targets, leading to a sharp decline in its stock price.

eletric-vehicles.com

Let’s hope they survive this!

 

[joec]

I think it helps to remember when this all went down, the EV market was vastly different from what it is today. It's going to be easy to judge the frankly silly estimates from several years ago given the benefit of hindsight.

But every EV maker suffered from mass cancellations around that period. Folks were plunking down cheap deposits on seven, eight cars, knowing they'd only buy one of them.

Whether Lucid did anything specifically wrong will be up to the courts. But as far as I'm concerned, every EV maker was overly optimistic about sales around that time. My guess is this will be dismissed.

 

[hmp10]

Ooo, a shareholder lawsuit over missed production targets. And here I was thinking that the way to make money off a promising startup was to buy its stock for the long term.

I think I'll call my lawyer about that $250,000 deposit I put down for a Tesla Roadster Founders Edition in 2017. (Yeah, I know it's not a startup, but promises are promises, damn it.)

Time's a wasting'! Money to be had!

 

[Joe]

Is this even legit? Or just fake news click bait.

 

[inthewoods]

ambulance chasing lawyers

 

[borski]

Ooo, a shareholder lawsuit over missed production targets. And here I was thinking that the way to make money off a promising startup was to buy its stock for the long term.

I think I'll call my lawyer about that $250,000 deposit I put down for a Tesla Roadster Founders Edition in 2017. (Yeah, I know it's not a startup, but promises are promises, damn it.)

Time's a wasting'! Money to be had!

“The lawsuit claims that the misleading forecasts enabled Rawlinson to secure substantial personal compensation, including a $379 million package in 2022, making the CEO the highest-paid automotive executive that year.”

Except that’s not what happened. And that pay package was set up well before then.

“As alleged herein, the truth was that: (a) Rawlinson knew all along that Lucid could not meet the aggressive production targets announced on November 15, 2021; (b) Rawlinson knew the purported added production capacity of the new factory was irrelevant because the Company could not come close to reaching it in the near term; and (c) Rawlinson knew the Company was having unique production problems beyond those being suffered by other auto manufacturers,”

That’s what they have to prove. I have zero doubt Lucid didn’t break SEC law or intentionally mislead investors, but hey, that’s what the courts are for. I’m excited to see this nuisance suit thrown out

 

[hmp10]

“The lawsuit claims that the misleading forecasts enabled Rawlinson to secure substantial personal compensation, including a $379 million package in 2022, making the CEO the highest-paid automotive executive that year.”

I get so tired of all the jabs on the internet -- and now in this lawsuit -- at Rawlinson's compensation package. They rest on simplistic assumptions born of fundamental misunderstanding about strategic executive compensation.

Let me be clear: I have no specific knowledge of what went on with Rawlinson's compensation. But I am pretty sure that the Saudi PIF did not invest in Lucid -- and Rawlinson -- with an aim to reach any specific profitability in any specific timeframe. I think there are numerous signs that the Saudis are playing a very long game in terms of diversifying their economy beyond oil and into alternate energy and transportation. And they aspire to hold something more foundational than just financial positions. They want ownership of key technology.

I strongly suspect that the initial years of Rawlinson's compensation were and will be tied much more to his ability to deliver technology leadership to Lucid's controlling owners than to deliver quick profits or quick sales numbers. And Rawlinson has delivered on the technology front in spades, with Lucid now generally recognized as having taken leadership in core EV powertrain technology in barely more than a half dozen years.

Day traders, certain fund managers, and flat-footed retail investors may live for quick profits. Strategic investors do not.

It's such a damn pity that this country can't get its head wrapped around what the Saudis understand and is, instead, promoting climate denialism and beating the drum to drill, frack, and burn its way forward on fossil fuels.

 

[Neurio]

Can we ban links to eletric vehicles? It's such a shittily run website with poorly written articles and clickbait BS. I refuse to click any links from them to avoid giving them site traffic.

 

[Joe]

Can we ban links to eletric vehicles? It's such a shittily run website with poorly written articles and clickbait BS. I refuse to click any links from them to avoid giving them site traffic.

Might need to

 

[NoseyReporter]

Might need to

Just like Torque News.