Lucid/Pinal County Land Deal

[Dkars1]

Excerpt from the Pinal County newsletter today:

In the County Manager's report, Leo Lew told the Board that following last month's Development Agreement with Lucid Motors, the deal has now closed with the County issuing $115 million of bonds to acquire 1366 acres of land. The County will lease the land to Lucid Motors under a lease-purchase agreement that sees Lucid Motors pay the annual debt service, and then in four years, they are required to purchase the property, covering the principal and accrued interest. No taxpayer money is being expended. Over the next 17 years, Lucid Motors are projected to support around 21,000 jobs and an estimated $255 billion of economic output.

 

[Tesla2.0]

Excerpt from the Pinal County newsletter today:

In the County Manager's report, Leo Lew told the Board that following last month's Development Agreement with Lucid Motors, the deal has now closed with the County issuing $115 million of bonds to acquire 1366 acres of land. The County will lease the land to Lucid Motors under a lease-purchase agreement that sees Lucid Motors pay the annual debt service, and then in four years, they are required to purchase the property, covering the principal and accrued interest. No taxpayer money is being expended. Over the next 17 years, Lucid Motors are projected to support around 21,000 jobs and an estimated $255 billion of economic output.

Another fearless attitude of Lucid business strategic movement.

 

[SubSailor]

I live in Pinal County and I cannot envision a business model with Lucid expanding so rapidly and only pushing out 1600 or so vehicles since they started production. I have to admit that I am getting anxious and purchasing a used Model S LR for $114k with only 450 miles on it and no sales tax since it is a private sale is starting to look good. I can drive it until Lucid decides to build my GT. I just did a trip to Vail with my spouse's Model 3 LR and the software was great, FSD worked well and Tesla Superchargers all the way. $64 fees up and $61 back with 5 stops ranging from 15 minutes to 35 minutes. Oh no, does this make me a fanboy????

 

[level]

Another fearless attitude of Lucid business strategic movement.

When you have PIF standing behind you, you have no fear, lol

 

[hydbob]

I live in Pinal County and I cannot envision a business model with Lucid expanding so rapidly and only pushing out 1600 or so vehicles since they started production. I have to admit that I am getting anxious and purchasing a used Model S LR for $114k with only 450 miles on it and no sales tax since it is a private sale is starting to look good. I can drive it until Lucid decides to build my GT. I just did a trip to Vail with my spouse's Model 3 LR and the software was great, FSD worked well and Tesla Superchargers all the way. $64 fees up and $61 back with 5 stops ranging from 15 minutes to 35 minutes. Oh no, does this make me a fanboy????

When the chip shortage limits your initial production run, might as well build a bunch of factories! But really, they need to do this to get their warehousing and logistics all under the same roof and not 1 hour away.

 

[Adnillien]

When the chip shortage limits your initial production run, might as well build a bunch of factories! But really, they need to do this to get their warehousing and logistics all under the same roof and not 1 hour away.

Do you have inside information that chips are limiting supply? Peter has blamed it on many things but not chips. Chips are impacting almost every other automaker so it would not be a surprise.

 

[hydbob]

Do you have inside information that chips are limiting supply? Peter has blamed it on many things but not chips. Chips are impacting almost every other automaker so it would not be a surprise.

No I was just being facetious about that.

 

[SubSailor]

hydbob---I agree they are trying to centralize their operations and, in this current environment, nothing is easy. My main thought, with only a few horses being fed, why build a bigger barn??? I do believe, in Pinal county, construction workers are easier to obtain than auto assembly line workers; which probably will delay 2nd and 3rd shifts for production. The plant is in the middle of nowhere so skilled workers will need great enticements to relocate in this area. Casa Grande is growing but Pinal county is nothing like Maricopa county where Phoenix/Scottsdale are located. (Great county supervisors and benefits to build factory in Pinal so economically feasible in that area)
Maybe they are planning ahead, which is good, but the need to produce vehicles is pretty paramount in a startup auto company. Of course, deLorean is coming back so all may wind up good.
BTW, thanks for all your great input on this forum. I have my lists ready for my GT delivery date and will continue reviewing this forum to stay abreast of all Lucid issues and developments. My spouse has already vetoed the Sapphire but will consider a Gravity in the future.

 

[hydbob]

hydbob---I agree they are trying to centralize their operations and, in this current environment, nothing is easy. My main thought, with only a few horses being fed, why build a bigger barn??? I do believe, in Pinal county, construction workers are easier to obtain than auto assembly line workers; which probably will delay 2nd and 3rd shifts for production. The plant is in the middle of nowhere so skilled workers will need great enticements to relocate in this area. Casa Grande is growing but Pinal county is nothing like Maricopa county where Phoenix/Scottsdale are located. (Great county supervisors and benefits to build factory in Pinal so economically feasible in that area)
Maybe they are planning ahead, which is good, but the need to produce vehicles is pretty paramount in a startup auto company. Of course, deLorean is coming back so all may wind up good.
BTW, thanks for all your great input on this forum. I have my lists ready for my GT delivery date and will continue reviewing this forum to stay abreast of all Lucid issues and developments. My spouse has already vetoed the Sapphire but will consider a Gravity in the future.

There was some info floating around somewhere that part of the bottleneck was with logistics from their Tempe warehouse to the factory in Casa Grande. Plus the way the factory is setup now is not terribly efficient. They really need to get their main production line started and not use the paint shop as a dual purpose manufacturing building.

 

[joec]

Maybe this is why Lucid is so anxious to be ready for expansion. Sales of ICE cars to be banned in CA by 2035.

California calls time on internal combustion engines from 2035

In the face of federal inaction, the Golden State acts.

arstechnica.com

 

[Tagilroy]

When you have PIF standing behind you, you have no fear, lol

What is “PIF”?

 

[Neurio]

What is “PIF”?

Saudi Pubic Investment Fund

 

[HC_79]

I still believe we’re not being fed the full story. You don’t rapidly expand a factory that aggressively when you don’t have the orders to meet the final capacity. They’re either arrogant / delusional or they think the Gravity is going to be a huge success to warrant a production line of 90,000 by end of next year.

OR

Something is in the works that they think is going to sell in bucket loads that’s not announced and coming sooner rather than later.

 

[Tagilroy]

Saudi Pubic Investment Fund

Thanks!

 

[Luci]

Maybe this is why Lucid is so anxious to be ready for expansion. Sales of ICE cars to be banned in CA by 2035.

California calls time on internal combustion engines from 2035

In the face of federal inaction, the Golden State acts.

arstechnica.com

 

[Luci]

I just read an article that the similar law with the same timing was passed in Virginia.

 

[RGS_AZ]

Washington State is planning to follow along with the ban on new ICE vehicles after 2035 as well.

 

[Sandvinsd]

Those states and a few others had passed laws saying that they would follow CA and the CARB rules they establish, essentially trigger laws. Virginia with their new governor Youngkin is reconsidering that law.