What I can’t find in that article is how much of those 10B are going to be used in the expansion of the factory. Four construction phases are projected I believe. Presenting just total expenditures and total revenues for a given period doesn’t mean much on it’s own.
Disclosure:
I have high expectations for Lucid, likely highly unreasonable 10x within 5 years. All they have to do is focus on their thing and disregard outside comparisons with Tesla. I wish all best for both.
I’ve bought a small portion of $CCIV after the merger was announced and confirmed by Lucid Motors
Like with any other startup bankruptcy is a highly likely scenario.
Lucid is positioning itself in the luxury segment, not the mass market. They have a similar approach to Tesla in this regard: start with an high end product and work their way towards more affordable and mass market offerings. Tesla’s model 3 is hardly a mass market product. It competes with the likes of BMW 3 series or Mercedes C class. There’s no shortage of customers in this space.
I think both these companies got their entry in the EV world right. Quite opposite to the strategy of Nissan who started with the Leaf. I think it’s just the wrong way to go about it. The right way is the Tesla and the Lucid way.
There’s one thing I prefer Tesla’s business model over Lucid’s though: Tesla owns its supercharger network, while Lucid depends on Volkswagen’s Electrify America network. In the short term this is advantageous for Lucid in the sense of less capex requirements, but in the long term Tesla doesn’t depend on others…
As for valuations I agree everything in this space smells rich
i agree… these new EV car makers want to be targeting the richer car buyers. These tend to be the buyers with more disposible income who want to do the planet well by buying an EV … the latest and greatest EV to talk to their cycling friends about when riding their carbon bikes through the city dressed in lycra…
the mass market what the nissan, honda, renault and of late VW’s and Ford are targeting are the average joe… who on average spends 15-20K on a car and to them is the second largest purchase they will make after a home (in some cases that is unattainable so the car tends to be the biggest purchase)
if VW go the renault route and allow their network to allow cars plugged in to it to give back to the grid (something renault have been trialling with good success in the azores) LUCID cars along with other compatible car manufacturers using said infrastructure could help power the grid… imagine in sunnier climates, a grid thats powered by solar and wind during the day and powered by EV cars during the night.
back to the point… i think these new car brands can only target the richer car drivers in order to even stay competitive… and to that they have to unercut them for their piece of lux. The established manufacturers are too engrained and have fingers in many pies to worry about making highend EV’s (for now) - if they were all on a level playing field and BMW, Mercedes, AUDI etc. all made EV’s at the same pricepoint / spec as Tesla i think we’d see the truer picture to Tesla’s sales at the same time we’d then see how effective the Tesla supercharger network would be if only Tesla cars gain a true benefit from them… imagine buying an ICE car and told you can only put THIS particular fuel in it from THESE particular fuel stations.
The problem with approaching the EV by starting with offerings directed to mid range and low range markets is related with: range anxiety. Battery technology is not yet in the stage where manufacturers can produce a product with 300 miles range for 20k. That’s why, many think, those cars with 120 miles range for £20k don’t sell like cupcakes. Batteries need to improve a lot for mass market adoption. I think Tesla and Lucid are on the right track. So is Porsche in the Volkswagen group (for how long). Ford’s Mustang EV may be reasonably ok. But I think they all should start from their top end models. I don’t think many people will buy EV’s the size of Golf, Focus or Megane if they don’t have a decent range.
The infrastructure approach you mention is interesting
yeah agreed… EV hatchbacks will be a hardsell when they are priced at 30k+ - that sort of money buys you the hottest of hot hatches… and i know which i would choose. To be fair i would choose a stupid powered loud petrol car over near enough all EV’s LOL … but with the way legislation is going zero emmission cars are going to be the target for all these governments
quite interesting what the’re doing on the little island tests:
Kessler Topaz Meltzer & Check, LLP Announces Class Action Lawsuit Has Been Filed Against Churchill Capital Corp IV
The law firm of Kessler Topaz Meltzer & Check, LLP announced investors of Churchill Capital Corp. IV that a securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of Alabama against CCIV on behalf of those who purchased or acquired CCIV securities between January 11, 2021 and February 22, 2021, inclusive (the “Class Period”). ~ SimplyWallSt.
At the last AMA Adam said they were planning on doing this but when they can get it right. It comes down to elective and required shareholder actions. They have a system for required actions ie dividends but not for elective.
This is a nice summary of the AMA if you don’t want to watch the whole thing.
