Tesla Inc TSLA CEO Elon Musk is seemingly of the opinion that Lucid Group Inc LCID, the EV maker helmed by a former Tesla employee, will be taken private given their loss-making streak.
What Happened: “Gonna go out on a limb and say that Lucid will be taken private in 2024. $LCID,” Tesla enthusiast Farzad Mesbahi said on X, formerly Twitter. The individual pinned the guess down to the company’s ‘unsustainable path’ and said, “They've got talented folks but it seems like they need a total restructure of some sort.”
The Tesla CEO, who often reacts to Tesla and EV enthusiasts on X, responded to the post saying, “Good guess.”
Lucid’s Financial Picture: Lucid reported a quarterly loss of 28 cents per share and revenue of 137.8 million for the third quarter on Tuesday. The company delivered 1,457 vehicles in the quarter and made 1,550. This takes the loss incurred per vehicle delivery to over $433,000 for the company whose CEO Peter Rawlinson was formerly the chief engineer for Tesla‘s Model S.
Additionally, in an attempt to align deliveries with production, the company is now looking to produce only 8,000-8,500 vehicles this year, down from its earlier projection of over 10,000 units.
Though Lucid operates in the U.S., it is 60% owned by Saudi Arabia’s Public Investment Fund (PIF). The PIF has invested about $5.4 billion into Lucid since 2018.
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