Morgan Stanley 12th Annual Laguna Conference

[Joe]

Less than an hour before Peter Rawlinson will participate in a fireside chat at the Morgan Stanley 12th Annual Laguna Conference.

Listen here: https://event.webcasts.com/starthere.jsp?ei=1685821&tp_key=8c42bd53b0&tp_special=8

 

[NoseyReporter]

Did he say level 2 ADAS by EOY? Promised by Peter during the fireside.

 

[Joe]

Highlights of Peter Rawlinson's Remarks at the Morgan Stanley 12th Annual Laguna Conference.

Credit to Lucid Oasis on X.com - https://x.com/LucidOasis

Production Capacity and Expansion Plans

• Lucid is targeting the production of 9,000 units of the Lucid Air in 2024. The company is positioning itself for future growth, with its plant in Arizona capable of scaling up to 90,000 units annually.
• A new plant under construction in Saudi Arabia will have an installed capacity of 150,000 units. This move is integral to Lucid’s global strategy and will support the production of future models, including the midsize platform.
• Lucid aims to introduce a midsize EV platform by late 2026. This platform will significantly lower production costs, enabling Lucid to compete in the mass market, particularly with models like the Tesla Model Y and Model 3.

Cost Reduction and Technology Leadership

• Lucid's technological edge allows for greater range with smaller battery packs, which helps reduce costs. For example, the Lucid Air Pure rear-wheel-drive model achieves 5 miles per kilowatt-hour and delivers 420 miles of EPA-estimated range from a battery pack that is just 84 kilowatt-hours.
• Lucid aims to achieve the holy grail of 6 miles per kilowatt-hour, which could enable them to deliver a 240-mile range EV with a smaller, more affordable 40 kWh battery pack.
• As Lucid expands from luxury to more mass-market models, the company is focused on reducing the Bill of Materials (BOM). Rawlinson emphasized that battery costs make up about 40% of the BOM for EVs, and Lucid’s technology will help bring these costs down.
• Lucid aims to scale production to 1 million units annually by the early 2030s, with a price point for its midsize EVs platform around $48,000-$50,000.

Financial Outlook and Capital Needs

• Lucid has enough liquidity to fund operations through Q4 2025. However, Rawlinson noted that additional capitalization will be required as the company continues its capital-intensive expansion.
• The Public Investment Fund (PIF) of Saudi Arabia provides crucial financial support. The PIF has placed an order for 50,000 vehicles, with an option for up to 100,000 vehicles. Additionally, Saudi Arabia has provided a $3 billion incentive package to support Lucid’s expansion in the region.

Focus on Software and Advanced Vehicle Technology

• Lucid is increasingly positioning itself as a technology-driven company, with key software innovations across battery management, motor control, and energy efficiency. This software advancement enables the Lucid Air to achieve industry-leading efficiency, a 5 miles per kilowatt-hour.
• Lucid’s new Atlas powertrain will operate at 900 volts or lower, which will help reduce costs and improve efficiency through reduced use of materials like copper.
• The upcoming Lucid Gravity SUV will feature an in-house developed augmented reality heads-up display (HUD), enhancing driver safety and awareness.
• Lucid plans to launch a Level 2+ hands-off driving system by the end of 2024, with significant in-house development of advanced driver assistance systems (ADAS).
• Lucid is focusing on (OTA) updates and improving infotainment and user experience systems.

Competitive Position and Market Outlook

• Rawlinson expressed confidence that Lucid can achieve lower battery costs than Tesla’s Model Y, positioning the company as a strong competitor in both the luxury and mass-market segments.
• While acknowledging the rapid advancements in the Chinese EV market, Rawlinson emphasized that Lucid’s cost efficiency and technological edge will help it compete globally.

Commitment to Sustainability and Vision 2030

• Lucid plays a critical role in Saudi Arabia’s Vision 2030, which aims to transition the country from a fossil fuel-based economy to a solar and electric future. Rawlinson praised Saudi Arabia’s foresight and expressed pride in Lucid’s contribution to this ambitious transformation.