LCID - Lucid: Business Strategy Profitability Prospects All Falling Out Of Place
2024-04-29 14:45:54 ET
Summary
- Lucid is struggling to compete with Tesla in the EV market, losing money on each car sold.
- The company's expansion strategy in products and markets is risky and unlikely to succeed.
- The support from Saudi Arabia's sovereign fund may not be enough to save the company from financial difficulties. The support will end some day if the company cannot turn around.
Lucid ( LCID ) was once hailed as the next Tesla or BYD because of its plan to conquer the EV market with its luxurious and technologically more advanced specifications, backed by the Saudi sovereign fund. But for an EV maker to out-compete Tesla, it first has to be able to compete. Lucid is far from that, with its under 2,000 unit quarterly sales and losing money on each car sold....
Lucid: Business Strategy, Profitability, Prospects, All Falling Out Of Place