Lucid: A Long Bet, So It Goes.

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Investing, you see, is a bit like hoping. You put something down, something real, and you wait. Sometimes it grows. Sometimes it doesn’t. Lucid Group (LCID +0.51%) is a good example. Shares, as of late, have lost a considerable portion of their initial enthusiasm. Ninety percent, if you’re keeping track. A steep drop, even for a company trying to build the future. So it goes.

They’re still losing money, of course. A lot of it. But money, as anyone will tell you, is just a story we tell ourselves. The latest quarter saw losses swell to $942 million. A sizable sum. For a company with a market cap of $3.3 billion, it’s…noticeable. Investors are patient people, though. Or, they have to be. They keep waiting for the story to change. So it goes.

A Kingdom and a Car

Lucid isn’t building cars for everyone, not yet. They’re building them for people who can afford to make a statement. And, conveniently, for Saudi Arabia’s Public Investment Fund (PIF). The PIF now owns a majority stake – 64% – which is a bit like having a very large, very patient angel investor. Or a kingdom with a plan. They’re diversifying away from oil, you see, and electric cars seem like a good place to start. So it goes.

The Saudis have provided a credit line – $2 billion – and a promise to buy 100,000 vehicles over the next decade. A lot of cars. They delivered 1,000 in the last quarter. A start. It’s a strange arrangement, when you think about it. An oil kingdom funding an electric car company. But then, most things are strange, if you look at them long enough. So it goes.

The Gravity of the Situation

The real test, naturally, will be whether Lucid can sell cars to regular people. They’re working on the Gravity SUV, and a more affordable model – the Lucid Earth – starting around $48,000. A reasonable price, for a luxury electric vehicle. If they can pull it off, they might actually have a chance. Economies of scale, you know. The usual story. So it goes.

They’ve also partnered with Uber Technologies to provide vehicles for their autonomous taxi program. A potentially lucrative opportunity. But then, potential is a funny thing. It rarely amounts to much. Still, it’s something to watch. So it goes.

Ten Years Hence

Will Lucid be a success? Honestly, who knows. The next decade will be challenging, that much is certain. But they have a powerful backer, and a decent product. And sometimes, that’s enough. Sometimes, it isn’t. Investing, you see, is a gamble. A long bet on a future that may or may not arrive. So it goes.

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2026-02-20 19:02