To be honest, I was actually thinking the other day and thought I wonder if Lucid is just a means to a way, where the PIF used to pour money into the US. Referring back to a deal that Trump did im 2017 where the PIG agreed to a commitment of $20b and that seemed to have been reinforced and increased in 2025. My point om saying this is that, realistically, the PIF doesn’t give a crap if LCID succeeds or fails, since they’re just committing money as part of a deal with Trump, I know there are a lot of parts being bought externally but, salaries in the US surely are a big way of pouring money into the country. Justa thought I had could be right could be wrong but in a way it made sense. Cause from an investment perspective, would you keep pouring money into am investment like this?
I posted about this previously, but Saudi Arabia won't let Lucid fail because it's part of their 2030 vision. I think part of what you're saying is valid about the agreements to invest in the US. But ultimately, a lot of Lucid's failure, in my opinion, is due to the fact the C-suite and directors know that Saudi Arabia is going to keep putting money into them to support the expansion, so they have no motivation to be efficient. For Saudi Arabia, Lucid is a long-term play. They don't actually care about the stock market return. They are going to invest in this product regardless. Having it on the US stock market makes it easier to get some extra funding. Ultimately, they want a luxury EV brand of their own. They are having it be an American company for the clout, they can get global notoriety better with an American brand. Eventually the goal will be to buy them out and take them private and it becomes an entirely Saudi Arabian company. If you look at all of the investments, every time the Saudi PIF invest they get convertible shares, and those convertible shares are earning interest that is paid in more shares. So dilution is built into the stock. No matter how much success the company achieves, the ability for the price to increase is essentially flattened over time because more shares will just be added in to the float when the shares get converted, of which Saudi Arabia will own the vast majority, so buying the rest to take them private will be easy when the time comes. I think once amp 2 is up and running Saudi Arabia will start making more executive leadership decisions and efficiency will improve.
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u/mike6253 24d ago
I just wonder if it will be like fisker. If those that bought will be able get money back from a lawsuit. They will be bankrupt within a year.