Why Does Saudi Arabia Keep Bailing Out Lucid?

Lucid Motors is an electric vehicle start-up that went public by merging with a SPAC in 2021. Their vehicle sales have massively underperformed expectations and they're losing money at an alarming rate. Despite this, the Saudi Arabian sovereign wealth fund continues to pump billions of dollars into the company.



#Wallstreetmillennial #lucidmotors #electricvehicle

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0:00 - 1:38 Intro
1:39 - 7:40 Lucid Motors
7:41 Saudi Arabia

[cpm]

This is still probably a better investment than their "line" city.

[FishBola]

For a company called Lucid they seem to be dreaming.

[YourFinanceGuide]

Saudi Arabia is allergic to making good investments outside Saudi Aramco.

[nickafanasyev]

Lucid makes fine cars.They just need to figure out how to make $

[PXAbstraction]

"By merging with a SPAC." Take a drink!

[benchoflemons]

Because not funding lucid would be an admission of making a bad investment.

[fuzzy]

ah, the Adam Neumann business model, suck all the money from your investors.

[Slaphappy]

Elon Musk always said by far the hardest task Tesla faced was figuring out how to mass manufacture their vehicles, not designing them or making prototypes.

[RobertLeBlancPhoto]

I drove a Lucid Air Touring at the nearby Lucid store just last Sunday and it was really impressive. I'm waiting to drive the Gravity before ordering anything though.

[dosmastrify]

I keep asking myself the very same question. Seems like the only person getting rich is Pete rawlinson.
All the magazines said they had great cars, but they keep selling them at a loss. They said watch out for a 48, 000 car.... Why are we watching out? Are we watching to see how much more money you can lose per unit???

[MB-jtmo]

Shout out to my homies who lost 'you don't even want to know' amounts of $ on Lucid and Rivian

[georgesealy]

Lucid is in this for the long haul. They have the best technology, and they will be selling premium cars all around the world. The Saudis have staying power.

[Shiroyashasama]

I test drove a Lucid car a while back and it’s nice but the price given what you get is ridiculous

[CKpremium]

My buddy was on the lucid hype train a while back with an avg of $32/share.. I told him it was a terrible investment and he wouldn’t listen.. finally it hit around $26/share and I went over the company’s financials with him and how he should cut his losses.. he listened to me and sold and he still thanks me all the time.. we live in a pretty wild time when there’s so many different bad stocks being hyped right now..

[tommyhairyeah]

Cheap cars, that’s what everyone wants and needs not 100k+ bricks

[TheDailyDriver]

I met the Saudi member that made this acquisition and they have a lot of pride for Lucid. They honestly have an unlimited budget. Although they are wanting profitability, they see the long game.

[xiphoid]

Saudi would do better taking the Norwegian route. Instead of investing the sovereign wealth fund into failed projects, just invest it into a diversified portfolio of international stocks and bonds. When you saved enough, you can just live off the interest and dividends forever.

[jaard]

Why didn't you mention the latest news that the CEO's pay package in 2022 was $278 million. More than $1 million a day. Criminal! Where's the lawsuit?

[thadeouszeus]

I see Lucid as a battery power company. They have an innovative product with their battery design and regenerative braking tech. I see the cars as proof of concept, evidenced by their involvement in F1e. Their goal may really be to sell their tech product or license patents to other manufacturers.

[soulsoulsoul]

doors not closing and squeaky steering wheels to be expected from a new car company ? no its not to be expected for the price they are asking it should be immaculate.