Even After $1.75 Billion Of Funding, I’m Staying Well Clear Of Lucid

Summary:

• Lucid receives a $1.75 billion funding boost and launches an intriguing SUV, but financial issues persist, leading me to maintain a Sell rating.
• Lucid’s focus on luxury and innovation, with vertically integrated manufacturing and proprietary software, sets it apart in the EV market.
• The advanced Arizona facility aims to produce 90,000 vehicles annually, crucial for expanding beyond sedans and achieving sustainable profits.
• Heavy reliance on Saudi Arabia’s Public Investment Fund, which now owns 60% of Lucid, adds significant influence and potential stability.

The electric vehicle (EV) market has been through a bumpy few years, with speculation and hype offset at times by dramatic declines. With enthusiasm for the technology on the rise again, and with interest rates and various economic variables entering a new phase, only

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