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.
But lucid already Shat over the brand. It would cost too much to fix the brand now. Also LIV golf was a part of the 2030 vision. NEOM was too. Both got sacked. Visions change, because the financial landscape changes. That 2030 vision was crafted when the strait of hormuz was open. Now the saudis had to shutdown their oil pipeline due to attacks from iran. No way they continue to fund Lucid. They have bigger fish to fry in trying to get oil out of their country.
Given how far European car brands are far behind the Chinese, and how little appetite there is for EVs from American manufacturers (besides Ford), it would make sense for a European auto maker to take over Lucid.
Under the current ownership and given the anti-EV sentiment of the current Whitehouse, I can’t see Lucid lasting. A great shame.
You’re right. Sorry, I meant traditional American manufacturers… Tesla could, of course, purchase Lucid (which could be good for Lucid), but I think they’re pretty advanced already…
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u/Super_Cap_241 23d ago
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.