One gathers Lucid (LCID +14.80%) is experiencing a minor effervescence today. A 13.8% lift, as of midday, which, against the backdrop of a rather listless S&P 500 (up a paltry 0.2%) and a similarly uninspired Nasdaq Composite (0.1% gain), is, shall we say, noticeable. Though one does wish these things wouldn’t be presented as if they represent actual progress.
The source of this momentary perk? Rockwell Automation, apparently lending a hand with Lucid’s Saudi Arabian manufacturing plant. One assumes they’re not offering miracle cures, merely automating the losses. Still, a bit of efficiency is always diverting, isn’t it? Though, one notes, the share price remains down a rather alarming 64% over the last year. A statistic one suspects is being conveniently overlooked in the current fanfare.
A Spot of Automation, Perhaps?
Rockwell, in a press release this morning – a medium one trusts they paid handsomely for – announced they’ll be providing technologies to support the expansion of Lucid’s facility. Software, naturally. One imagines it will be exceptionally good at calculating the ever-increasing cost per vehicle. The electric-vehicle specialist will, it seems, be using this software to manage and “improve” efficiency. One wonders if they’ve considered simply making cars, rather than improving the efficiency with which they don’t make them.
The Road Ahead (or Lack Thereof)
Lucid stock, one observes, has a habit of staging these little dramas on remarkably little substance. Investors, bless their optimistic hearts, shouldn’t mistake today’s flutter for a sustained recovery. The integration of Rockwell’s software might, conceivably, offer some marginal benefit to the Saudi Arabian plant. However, the fundamental issues plaguing the business – and the stock – remain resolutely in place.
Lucid continues to post negative gross margins on each vehicle it manages to assemble, and the scaling of manufacturing proceeds at a pace that can only be described as glacial. Consequently, the company remains a considerable distance from achieving the economies of scale needed to halt the haemorrhage of capital. One suspects a rather large chequebook is required to keep the whole affair afloat. A truly tiresome state of affairs, wouldn’t you agree?
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2026-01-21 21:05