"Marc Winterhoff, Lucid's interim chief executive, told the FT, "The money that we have right now will take us until the second half of 2026, we'll have to raise additional funds before we get profitable or break-even on our own,""
"What institutional investor wants to put money into a faltering company that has high fixed expenses in an industry that is unsteady but has a large number of competitors?"
"Lucid got $300 million from Uber and an agreement to buy 20,000 Lucid's Gravity SUVs. These will be operated by self-driving software. The plan has two problems. No car company has perfected self-driving software. And, approvals for the use of self-driving vehicles have been made by individual cities and states."
Small electric vehicle companies face a cash crunch despite multi-billion-dollar balances, with Lucid and Rivian burning billions annually. Lucid's interim CEO says current funds last until the second half of 2026 and additional financing will be required before profitability or break-even. Institutional investors may be reluctant to invest in high fixed-cost firms in a crowded, unstable industry. The Saudi Public Investment Fund and Uber have made large commitments, including $300 million and a purchase agreement for 20,000 Gravity SUVs. Lucid plans to operate those vehicles with self-driving software, but self-driving technology remains unproven and regulatory approvals vary by city and state. Production has been weak, with 3,863 vehicles built in Q2.
Read at 24/7 Wall St.
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