Robert Schintler’s Post

Lucid Motors stock slid nearly 18% on Thursday after the electric vehicle maker announced another capital raise via a share sale, as the California-based automaker seeks further runway ahead of the release of its upcoming electric SUV. Lucid said it will offer up to 262,446,931 shares, with the proceeds likely raising around $1.67 billion, for general corporate purposes as well as for capital expenditures and working capital. The company also said its majority shareholder, Public Investment Fund affiliate Ayar Third Investment Company, would purchase an additional 374,717,927 shares via a private placement, which would allow Ayar to maintain its 58.8% stake without dilution. The stock offerings come only two months after Ayar gave Lucid a cash infusion of around $1.5 billion. In addition, Lucid filed preliminary third quarter financial results, with a loss from operations expected in the range of $765 million to $790 million for the quarter, similar to the $790 million lost in Q2. More, from Pras Subramanian: https://lnkd.in/eDYH9uEU #yahoofinance #finance #EV #electricvehicle #energy #markets #stocks #investing #wallstreet #earnings

EV maker Lucid expects to raise $1.67 billion from stock sale Cash-strapped electric luxury sedan maker Lucid Motors said on Thursday a combined public offering and private placement of roughly 637 million shares would likely fetch it $1.67 billion. The stock sale as well as its latest warning of a bigger-than-expected loss for the third quarter sent Lucid shares down as much as 16.5% to $2.74, the lowest since July 2. The company expects to report a loss from operations of $765 million to $790 million for the quarter ended Sept. 30, compared with expectations of $751.7 million, according to data compiled by LSEG. Besides a public offering of more than 262 million shares, Lucid signed up Ayar Third Investment, an affiliate of Saudi Arabia's Public Investment Fund (PIF) and its biggest shareholder, to sell nearly 375 million shares in a private placement. Ayar expects to maintain its ownership of about 59% of the company's outstanding shares, Lucid said. "While the offering helps boost liquidity, the fact it resorted to issuing equity after such a precipitous decline for the stock over the past several quarters is a major red flag," said Garrett Nelson, vice president and senior equity analyst at CFRA Research. The sovereign wealth fund's affiliate committed an additional $1.5 billion in August, which Lucid had initially expected to provide sufficient liquidity until the fourth quarter of next year. Lucid had about $1.35 billion in cash and cash equivalents at the end of the second quarter. It intends to use proceeds from the stock sale and private placement for general corporate purposes, capital expenditure and working capital. Credit: https://lnkd.in/dXmEYRnt #globalevoutlook #evindustry #cleantransportation #sustainability #electricvehicles #automotives #investment

Lucid (NASDAQ: LCID) Stock Soars on Back of Key Shareholder Investment https://lnkd.in/dZPpm9WS #lucid #NASDAQ #stockmarket #stockmarketnews #BusinessNews #news #NewsAlert

LAST HURRAH FOR Lucid Motors (Rivian too)? After going public in July of 2021, Lucid has yet to achieve real scale, relying on the Saudi PIF and additional public offerings to counter massive cash burn. Rivian, the other major EV U.S. startup, went public a few months later in 2021. Similar cash burn scenario to Lucid, with additional capital raises and a significant investment from Volkswagen Group recently. Thankfully, both avoided the Fisker scenario circus. LUCID.... ➡ Lucid Motors has not scaled anywhere near original forecasts. ➡ Gravity SUV seems to be taking forever getting to market. ➡ No real details or firm timeline for lower-priced model. ➡ Price points currently too high, resulting in heavy incentives/price adjustments. ➡ No indication of initial quality from tiny sample size. ➡ Low visibility in N.A market, almost non-existent in Canada. ➡ Distribution strategy severely lacking reach. RIVIAN.... ➡ Rivian has achieved modest scale and but remains far from profitability. ➡ Select quality issues, but sample size remains small to indicate any potential trend. ➡ Good looking pipeline of new product, but when/too late? ➡ Low visibility in N.A market, almost non-existent in Canada. ➡ Distribution strategy severely lacking reach. We like Lucid and Rivian product, wanting both to succeed, but time is running out. Is a CREATIVE distribution strategy viable via a vetted OEM and/or quality dealer network (agency-type agreement)? INDEED IT IS :) :) PLEASE NOTE: We are currently soliciting for OEM, DEALER GROUP, SUPPLIER, SaaS contracts/other projects. Feel free to reach out to me directly. 416.993.9356 [email protected] #automotive #automotiveindustry #innovation #brand #technology #leadership #business #retail #oem #ev #electricvehicle

At Wilsey Asset Management we avoid hype investing. From time to time, we attempt to give evidence of how long-term, hype investing can destroy your portfolio. Here’s another example, in 2021, you may recall the hype around electric vehicles, people made it sound as if an internal combustion engine vehicles would never be sold again and we would all be driving electric vehicles. Well, the hype of the stock price matched that excitement, two examples are Lucid and Rivian automotive. The all-time high a couple years ago for Lucid was $35, recently it has fallen to under three dollars a share, a 91% decline. The other example is Rivian, in late 2021, it hit an all-time high of $146 per share and has recently fallen under $11 a share, a 92.5% decline. It is possible for these companies to turnaround and may do well in years to come, the massive decline in stock price is the reason we will not invest in a company which does not have earnings, and we will not pay more than 10 to maybe 12 times for those earnings going forward. We may miss out on some highfliers. but I’d rather take it slow and steady than try and hit the home run and lose 80 to 90% on an investment. For Lucid to get back to $35 a share that would be over a 1000% return. #investing #hypeinvesting #stocks #stockmarket #electricvehicles #rivian #lucid #electriccars #evstock #stockprice #stockhype #valueinvesting

At Wilsey Asset Management we avoid hype investing. From time to time, we attempt to give evidence of how long-term, hype investing can destroy your portfolio. Here’s another example, in 2021, you may recall the hype around electric vehicles, people made it sound as if an internal combustion engine vehicles would never be sold again and we would all be driving electric vehicles. Well, the hype of the stock price matched that excitement, two examples are Lucid and Rivian automotive. The all-time high a couple years ago for Lucid was $35, recently it has fallen to under three dollars a share, a 91% decline. The other example is Rivian, in late 2021, it hit an all-time high of $146 per share and has recently fallen under $11 a share, a 92.5% decline. It is possible for these companies to turnaround and may do well in years to come, the massive decline in stock price is the reason we will not invest in a company which does not have earnings, and we will not pay more than 10 to maybe 12 times for those earnings going forward. We may miss out on some highfliers. but I’d rather take it slow and steady than try and hit the home run and lose 80 to 90% on an investment. For Lucid to get back to $35 a share that would be over a 1000% return. #investing #hypeinvesting #stocks #stockmarket #electricvehicles #rivian #lucid #electriccars #evstock #stockprice #stockhype #valueinvesting

Lucid Motors' stock saw an impressive jump today, reflecting investors' renewed confidence in the luxury #EV maker's market position and growth prospects. This surge is likely a response to positive company updates or broader market trends recognizing the potential of high-quality #electricvehicles. Lucid's progress is a beacon for the #EV industry, highlighting the importance of product excellence and innovation in capturing consumer and investor interest. As the #electricvehicle market continues to expand, #Lucid's trajectory offers valuable insights into what drives success in this competitive sector. #LucidMotors #EVMarket #InvestorConfidence eMobi Labs https://yhoo.it/3U8qaTs

EV-maker Lucid expects to raise $1.67bln from stock sale! "#LucidMotors announced a public offering of over 262 million #shares, aiming to raise $1.67 billion, which led to a more than 17% drop in its #stock price during premarket #trading. The company also projected a larger-than-expected operational loss of $765 million to $790 million for Q3, surpassing analyst estimates. Additionally, #Lucid secured a #deal with #AyarThirdInvestment, its largest shareholder, to sell nearly 375 million shares privately. #Ayar is expected to retain about 59% #ownership after the sale. Despite previously securing $1.5 billion in August from the #Saudi fund, Lucid indicated it needs the proceeds from these offerings for #generalcorporate #expenses, capital expenditures, and working #capital. As of the end of Q2, Lucid had approximately $1.35 billion in cash." #autonews #automotivenews #news #auto #mobility #electricvehicles #electriccars #sustainability #sustainable #evmanufacturing #evmarket

Interesting development for Lucid Motors. This development underscores the importance of strategic credit picking in a high-rate environment #TidanCapital #CreditPicking #ConvertibleBonds

Lucid Motors's default risk has spiked to all-time highs in 2024 with its stock tumbling by about a third, a trend that may continue unless an event meaningfully improves liquidity or shows signs of better operating performance. A full takeover by its largest shareholder, Saudi Arabia's Public Investment Fund, is possible, yet the fund was reported as critical of Lucid's stock performance last year, in part because its cost basis per share is over $19 versus a current price about $3.  https://lnkd.in/ewmREPSz. #distresseddebt