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Q2 Earnings Call

Northpointe said:
Lucid doesn't have a production problem per se, they have a demand problem. That's the sobering reality confronting the new leadership team. It's good to see the exercise of discipline around production commitments. The prior leadership team was seemingly more focused on how many Gravity's they could build quickly. In doing so they short-changed quality and over-estimated demand. As a result you end up with a lot of cash tied up in unsold vehicles, which in turn leads to incentives and discounts to move inventory. Throw half-baked software, and maxed out service centers fixing production issues into the mix, and you have the makings of a death spiral.

Conversely BMW is selling out of the iX3. Some might consider it to be an inferior product and perhaps it is. But the name of the game is matching production with demand. And Lucid was way off in its estimations on demand.
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I think it's premature to suggest Lucid is in a death spiral. BMW is selling a lot of iX3s, it's true. But they have the advantage of more than just a well known brand and a lot of dealers: it's also a cheaper vehicle. Cosmos is Lucid’s opportunity to grow their volume much more than Air and Gravity.
 
I'm curious if the "sportier" Gravity will have a modified body shape mainly at the rear end. Less mini-van and more true sport SUV look. Sacrifice some storage for less weight and speed.
 
1.4 billion in cost saving through 2026…..shows you how bad past management was……they had no clue about what they were doing. You produce to demand, not produce to fantasy……
 
erigion said:
Quick Googling says that the totality of Saudi Arabia manufacturing employment is 1.5 million. The US auto manufacturers alone employ 950k, and that's not including parts suppliers. I wonder how fast Lucid can increase production at AMP-2 just based on labor constraints. The AMP-1 expansion tells me that they don't expect to be able to reach that 150k figure very quickly.
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I'm very curious to see how this is done. My understanding is that KSA citizens don't work except sinecure-type roles, and certainly not manual labor -- like the rest of the oil region, they import captive workers (mostly from Pakistan) that live in company barracks with relatively poor labor conditions. Will this be scalable for vehicle production and skill requirements? What will the tariff implications be? Is this ethical?
 
gaskiller said:
1.4 billion in cost saving through 2026…..shows you how bad past management was……they had no clue about what they were doing. You produce to demand, not produce to fantasy……
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You could very well be right. But it’s also possible that these decisions were undertaken at the behest of the board and/or major shareholder. It would not be the first time that a board established management targets that were unrealistic and unattainable. And when a single investor holds over 50% of your shares they usually aren’t silent.
 
Sportier version of gravity.. What about dream edition!? Not sporty enough..🙈 and then due to the current sales why make another model which costs even much more..🙈 to be makes no sense 😅
 
nashvillelucid said:
But how many people want a 3 row car that can go insanely fast?
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Add me to the list! The numbers may be small, but there is one very important factor: image.

Porsche: Track​
BMW: Handling​
Mercedes: Luxurious.​

Lucid: The best damn car. Sapphire trims put an exclamation point on that.​

I hope Lucid never forgets that DNA, with every Lucid vehicle evoking the best damn car emotion.
 
jered said:
I'm very curious to see how this is done. My understanding is that KSA citizens don't work except sinecure-type roles, and certainly not manual labor -- like the rest of the oil region, they import captive workers (mostly from Pakistan) that live in company barracks with relatively poor labor conditions. Will this be scalable for vehicle production and skill requirements? What will the tariff implications be? Is this ethical?
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Hi

You got that wrong for Lucid

They are already in training and hiring spree

In fact, I got the ad just yesterday for lucid accepting applications for training through NAVA https://nava.edu.sa/en/
The training is only for Saudis

I have addressed this previously in another post

From the way I see it, the target is to have no less than 80% run by Saudis regardless of job position labor , technician or managerial levels with skilled experienced expats helping
 
This is exactly what I want to see in a new CEO. Acknowledging weaknesses and implementing plan to improve. More of the same would guarantee failure. At least he’s giving this a fighting chance. I’m rooting for him and the new leadership.
 
Lycra said:
Sportier version of gravity.. What about dream edition!? Not sporty enough..🙈 and then due to the current sales why make another model which costs even much more..🙈 to be makes no sense 😅
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I feel like they talked about it in terms of unveiling a completely new Gravity variant, which to me rules out just announcing that they'll keep producing dream editions.
 
jered said:
I'm very curious to see how this is done. My understanding is that KSA citizens don't work except sinecure-type roles, and certainly not manual labor -- like the rest of the oil region, they import captive workers (mostly from Pakistan) that live in company barracks with relatively poor labor conditions. Will this be scalable for vehicle production and skill requirements? What will the tariff implications be? Is this ethical?
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You shall worry about Iran's attack.
 
Northpointe said:
I'm guessing not many. But that's not always the objective with a "halo" car. While the Sapphire Air doesn't sell in large numbers it's far easier to align production with demand as each one is built to order. I suspect that this would be the same approach taken with Gravity.

But an outdoorsy or off-road Gravity is likely not in the cards as it would likely represent a significant revision from the current vehicle. And the vehicles you cited are all built as outdoor vehicles from the ground up.
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I wanted to say I hope you're wrong but the more I think about it the more I agree the Sapphire Gravity would be the right move.
 
jered said:
I'm very curious to see how this is done. My understanding is that KSA citizens don't work except sinecure-type roles, and certainly not manual labor -- like the rest of the oil region, they import captive workers (mostly from Pakistan) that live in company barracks with relatively poor labor conditions. Will this be scalable for vehicle production and skill requirements? What will the tariff implications be? Is this ethical?
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Re: ethics.
Right or wrong, I believe we are living in a world where pragmatism drives decisions. I’ve spent several years in the ME and society/government does not function the same way the West does. I’m not saying that’s right or wrong. At some point we have to acknowledge we cannot force other people around the world to adopt our lifestyle or purported ethical system.
Does MBS have his faults? For sure, but DJT does also. Is the Saudi (and most other oil rich countries in the ME) process of importing labor for manual work exploitative? Sure. But we also do the same thing here in the States exploiting cheap foreign labor for agriculture work.

I think Lucid’s engagement with the KSA is a positive thing on both sides. It allows the economy to diversify, unlocks near limitless capital for Lucid and exposes Westerners and Saudis to each other’s culture. Hopefully it builds understanding and a business venture that can thrive.
 
illopp00 said:
They need to slap down that EV Cayenne...which also costs $250K
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You can spec a very nice Turbo with Active Ride for $200K. And similar spec S version for $180K. That said, Gravity is a lot more car in many ways for ~$80K less.

My guess is that the "sportier" Gravity will be more oriented toward outdoor adventure. Not a Sapphire tri-motor performance build. Lucid has a broad reputation for making luxury vehicles that are out of reach for most. A Sapphire Gravity would only reinforce that.
 
Seems we will see 20% down today. How much ever they sugar-coat stuff, they don't have enough money till Q2 2027 to release Cosmos. I believe another dilution is coming before Q3 and at this rate, it may be one more in 2027 Q1 or Q2 ☹️. I should have taken my loses and exited at $8
 
sri said:
Seems we will see 20% down today. How much ever they sugar-coat stuff, they don't have enough money till Q2 2027 to release Cosmos. I believe another dilution is coming before Q3 and at this rate, it may be one more in 2027 Q1 or Q2 ☹️. I should have taken my loses and exited at $8
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Of course there will be more rounds of funding. This isn't new information. It will take at least a couple of years of Cosmos production and successful sales before Lucid could possibly achieve positive margins.

An unsolicited and probably unwelcome bit of general advice - put the bulk of your investments in index ETFs and don't keep looking at them every day. If you want to gamble on individual companies, make them a small portion of your portfolio.
 
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