Tesla CEO Elon Musk on Wednesday shared his perspective on rival EV makers Rivian Automotive Inc (NASDAQ:RIVN) and Lucid Group Inc (NASDAQ:LCID) after they reported quarterly earnings.
What Happened: Regarding Lucid’s fourth-quarter earnings results, Musk remarked, “Their Saudi sugar daddy is the only thing keeping them alive,” in reference to the substantial investment from Saudi Arabia’s Public Investment Fund (PIF), which has injected about $5.4 billion into Lucid since 2018, with a $1.8 billion investment in the second quarter of last year alone, making the sovereign fund Lucid’s majority owner.
In another post, Musk added that the company’s current market cap is “the option value of a Saudi take-private.” Lucid’s market cap as of last close is at $8.43 billion, dismally small as compared to Tesla which has a market cap of $617.09 billion.
For the fourth quarter, Lucid reported revenue of $157.2 million, which missed the consensus estimate, and a better-than-feared loss of 29 cents per share.