Q1 Numbers

[DJL]

I don't believe we are going to see a good earnings call until the market turns around, interest rates come down, the cash burn due to plant construction comes down and... Lucid's production of lower cost models ramp up. Getting the Pure numbers up will help, the Gravity....hmm, it is a mystery as to how well that will help because its sales will be impacted by its price and we still don't know what that will be ( how big of a market is the $130K+ SUV????) Also, I am still scratching my head as to why Lucid spent so much time and money on the Sappphire. They will never recoup its costs due to the sliver of a market that car will satisfy.

WIth all that said. Lucid, in one form or another will last since the Saudis are making it one of its centerpieces in its Green Initiative. Plus, it is the best car around. I just love my car and love it more and more each day. I have never been so passionate about a car as my AGT. Lucid's needs to position itself better to the market that can afford to buy its cars.

 

[Neuner89]

Demand is dropping. Car is great looking, drives amazing, range is off the hook. Love it as an engineering marvel. But the UI is meh. People can criticize Tesla all they want, but their UI is fun, their driver assist tech/auto pilot/FSD is really excellent and they are still improving everyday. I think luxury car buyers- especially younger ones who are the market drivers- want to be blown away by the UI experience too. Important piece that Lucid for some reason overlooked, and don't seem to be in too much of a hurry to rectify- even though it would seem to be the easiest to 'fix'. Just be the first to upload 'Call Annie'. (heheh- only kidding- sort of. She would be a MUCH better assistant to the clueless Alexa- and at least Lucid would be doing something that would be at the forefront) Have a web browser option. Have an option where music can be shown on pilot panel, and map simultaneously on the bottom screen. Show more trip data (time traveled?) Have ability to select what is shown on the screens. Show more user data on the Highway assist (cars in front and to the side for instance like Tesla) - have it recognize traffic lights, stop signs, and different vehicles (motorcycles, trucks, etc.) Have it go automatically in stop and go traffic without pressing the pedal. Rudimentary items that Tesla has had for years. Have games and more selection of apps. Have the driver say- Wow- that's really cool! This is what the car is missing if it really wants to be sold as a super premium vehicle. Otherwise, it's competing against Polestar.

 

[quantum]

Demand is dropping. Car is great looking, drives amazing, range is off the hook. Love it as an engineering marvel. But the UI is meh. People can criticize Tesla all they want, but their UI is fun, their driver assist tech/auto pilot/FSD is really excellent and they are still improving everyday. I think luxury car buyers- especially younger ones who are the market drivers- want to be blown away by the UI experience too. Important piece that Lucid for some reason overlooked, and don't seem to be in too much of a hurry to rectify- even though it would seem to be the easiest to 'fix'. Just be the first to upload 'Call Annie'. (heheh- only kidding- sort of. She would be a MUCH better assistant to the clueless Alexa- and at least Lucid would be doing something that would be at the forefront) Have a web browser option. Have an option where music can be shown on pilot panel, and map simultaneously on the bottom screen. Show more trip data (time traveled?) Have ability to select what is shown on the screens. Show more user data on the Highway assist (cars in front and to the side for instance like Tesla) - have it recognize traffic lights, stop signs, and different vehicles (motorcycles, trucks, etc.) Have it go automatically in stop and go traffic without pressing the pedal. Rudimentary items that Tesla has had for years. Have games and more selection of apps. Have the driver say- Wow- that's really cool! This is what the car is missing if it really wants to be sold as a super premium vehicle. Otherwise, it's competing against Polestar.

Lack of demand is from the misconception that its a 150k car. Lucid should send a bunch of Pures to youtubers! Advertise the hell out of Pure. Set up billboards- Pure , starting at 87k, and give a 7.5k discount fo that as well. Lucid marketing is TOOOOO SLOW to react. they will wait a few quarters before all interest dies and then announce a 7.5k credit, whats the point then....do it NOW for the entire 2023 year for ALL CARS.

 

[quantum]

Also hoe they dont make the same mistake with Gravity. No need to release the ego dream edition first. Just go with the orders!

 

[thecodingart]

Lack of demand is from the misconception that its a 150k car. Lucid should send a bunch of Pures to youtubers! Advertise the hell out of Pure. Set up billboards- Pure , starting at 87k, and give a 7.5k discount fo that as well. Lucid marketing is TOOOOO SLOW to react. they will wait a few quarters before all interest dies and then announce a 7.5k credit, whats the point then....do it NOW for the entire 2023 year for ALL CARS.

1000000000x this

 

[Tesla2.0]

Lack of demand is from the misconception that its a 150k car. Lucid should send a bunch of Pures to youtubers! Advertise the hell out of Pure. Set up billboards- Pure , starting at 87k, and give a 7.5k discount fo that as well. Lucid marketing is TOOOOO SLOW to react. they will wait a few quarters before all interest dies and then announce a 7.5k credit, whats the point then....do it NOW for the entire 2023 year for ALL CARS.

Communication of Lucid is just always slow. It is as time still of 1990 style engineering firm. Advent of Internet suppose to make information goes faster, social media, and Twitter in even hyperwarp speed. Lucid should operate like Silicon Valley start-up speed, not a mammoth pace.

“Sexiness starting just under $80k. $87,400 with Inflation Reduction of $7500 rebate.”

Get 10,000 units out with $7,500 rebate each for $75M rebate. Is 75M a lot for marketing cost? Nope! That’s not even 10% of quarterly burn rate. it’s damn bargain marketing cost! If you can do full 75M a quarter rebate, and translate to 40,000 delivery annually! Cut other ridiculous cost to subsidize consumers.

I reject R&D spending tens of millions on Sapphire which probably only can yield less than 100 unit sales.

Get Pure out ASAP next 2 quarters to stimulate demand is the only path I see of long term viability.

 

[hydbob]

Lack of demand is from the misconception that its a 150k car. Lucid should send a bunch of Pures to youtubers! Advertise the hell out of Pure. Set up billboards- Pure , starting at 87k, and give a 7.5k discount fo that as well. Lucid marketing is TOOOOO SLOW to react. they will wait a few quarters before all interest dies and then announce a 7.5k credit, whats the point then....do it NOW for the entire 2023 year for ALL CARS.

Well, maybe the new VP of Marketing will help with a more aggressive marketing strategy.

 

[PrecociousToddlr]

Communication of Lucid is just always slow. It is as time still of 1990 style engineering firm. Advent of Internet suppose to make information goes faster, social media, and Twitter in even hyperwarp speed. Lucid should operate like Silicon Valley start-up speed, not a mammoth pace.

“Sexiness starting just under $80k. $87,400 with Inflation Reduction of $7500 rebate.”

Get 10,000 units out with $7,500 rebate each for $75M rebate. Is 75M a lot for marketing cost? Nope! That’s not even 10% of quarterly burn rate. it’s damn bargain marketing cost! If you can do full 75M a quarter rebate, and translate to 40,000 delivery annually! Cut other ridiculous cost to subsidize consumers.

I reject R&D spending tens of millions on Sapphire which probably only can yield less than 100 unit sales.

Get Pure out ASAP next 2 quarters to stimulate demand is the only path I see of long term viability.
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I'm not sure if discounting is the answer here. Then it becomes a race to the bottom. Just look at what discounting has done to the brand for Tesla. Now that customers know the automaker is discounting, they won't buy because they think another discount is just around the corner. Lucid is a Luxury brand. Discounting will be a slippery slope and it only provides instant albeit short term gratification. Lucid should keep the Air Pure at the current price. Then launch a new Air model that's more affordable.

 

[xponents]

I think that lucid's new prices are not working, especially for pure. Going from 77k to 87k, is actually a bigger difference in terms of target market than you think. No discounting, all we need is a PERMANENT return back to old prices.
Also, the pure is already really de-contented, so making a cheaper model would not be good.

 

[Tesla2.0]

I'm not sure if discounting is the answer here. Then it becomes a race to the bottom. Just look at what discounting has done to the brand for Tesla. Now that customers know the automaker is discounting, they won't buy because they think another discount is just around the corner. Lucid is a Luxury brand. Discounting will be a slippery slope and it only provides instant albeit short term gratification. Lucid should keep the Air Pure at the current price. Then launch a new Air model that's more affordable.

Some people canceled their orders because Pure delivery was waited too long and they missed their 7500 Fed Tax credit window. This 7500 is merely a stimulus to boost demand and get more units on the street. Tesla is doing that to drop 11k~25k on their cars, it’s different story. They chose not to ramp down to increase cause, instead pass that cost saving to customers and squeeze market entrants.

I don’t understand trim even lower than Pure? It wouldn’t even be luxury anymore…

 

[Halodde]

I think that lucid's new prices are not working, especially for pure. Going from 77k to 87k, is actually a bigger difference in terms of target market than you think. No discounting, all we need is a PERMANENT return back to old prices.
Also, the pure is already really de-contented, so making a cheaper model would not be good.

I think it's reasonable to make a different model for less $ though. I don't think they should have a lower level Air or even a further stripped down Pure. But another smaller model with a lot of the bells and whistles but 300 hp and 300 miles of range for $12k less than the Pure would probably get some worthwhile traction.

 

[PrecociousToddlr]

Some people canceled their orders because Pure delivery was waited too long and they missed their 7500 Fed Tax credit window. This 7500 is merely a stimulus to boost demand and get more units on the street. Tesla is doing that to drop 11k~25k on their cars, it’s different story. They chose not to ramp down to increase cause, instead pass that cost saving to customers and squeeze market entrants.

I don’t understand trim even lower than Pure? It wouldn’t even be luxury anymore…

I wasn't thinking of stripping the Pure of it's luxuries. The most expensive component in an EV is the battery. I was thinking more in terms of a smaller battery to save costs and bring the price down.

 

[xponents]

Some people canceled their orders because Pure delivery was waited too long and they missed their 7500 Fed Tax credit window. This 7500 is merely a stimulus to boost demand and get more units on the street. Tesla is doing that to drop 11k~25k on their cars, it’s different story. They chose not to ramp down to increase cause, instead pass that cost saving to customers and squeeze market entrants.

I don’t understand trim even lower than Pure? It wouldn’t even be luxury anymore…

The pure is already TOO barebones in my opinion. No ventilated seats, etc.

 

[Genghis]

The very first question on the call, and the answer. Ouch.

Its worth noting that the price action today is relatively positive all things considered.

That was Robinhood retail investors that voted as the most popular question to ask during earnings call. Talking about putting Peter on the spot to start the session

 

[Neuner89]

Lack of demand is from the misconception that its a 150k car. Lucid should send a bunch of Pures to youtubers! Advertise the hell out of Pure. Set up billboards- Pure , starting at 87k, and give a 7.5k discount fo that as well. Lucid marketing is TOOOOO SLOW to react. they will wait a few quarters before all interest dies and then announce a 7.5k credit, whats the point then....do it NOW for the entire 2023 year for ALL CARS.

Great idea. Another idea- they have Grand Tourings collecting dust apparently at the factory. Put them into the Turo rent a car program at LA, Las Vegas, Miami, etc. This way you get drivers paying $500+ per day and also potentially becoming owners. Plus you make your money back in a year.

 

[Drendino]

That was Robinhood retail investors that voted as the most popular question to ask during earnings call. Talking about putting Peter on the spot to start the session

“Peter, you often talk about under promising and over delivering, but you have only done the opposite. When will you start doing what you say?”

Peter’s answer “Supply chain…efficiency…technology….macro-economic”.

 

[NoseyReporter]

Great idea. Another idea- they have Grand Tourings collecting dust apparently at the factory. Put them into the Turo rent a car program at LA, Las Vegas, Miami, etc. This way you get drivers paying $500+ per day and also potentially becoming owners. Plus you make your money back in a year.

This is a terrible idea on so many levels. Wow.

 

[PrecociousToddlr]

Great idea. Another idea- they have Grand Tourings collecting dust apparently at the factory. Put them into the Turo rent a car program at LA, Las Vegas, Miami, etc. This way you get drivers paying $500+ per day and also potentially becoming owners. Plus you make your money back in a year.

They can change their name to "Lucid Motors and Rentals"

 

[NoseyReporter]

That was Robinhood retail investors that voted as the most popular question to ask during earnings call. Talking about putting Peter on the spot to start the session

But his response, it was as if he didn't see it coming! That to me was most shocking. Maybe the delivery was just weak.

 

[PrecociousToddlr]

“Peter, you often talk about under promising and over delivering, but you have only done the opposite. When will you start doing what you say?”

Peter’s answer “Supply chain…efficiency…technology….macro-economic”.

Maybe he should run for public office.