Lucid, PGA, and Saudi Arabia
Updated
Like many here, I read a lot about the PGA Tour merger with LIV. There was a lot of controversy around that. In general, it's interesting to see how easily Saudi Arabia turned a huge investment in a handful of golfers into a minority stake in the the entire PGA Tour. Will they try the NBA next?! Or NFL!? It's worth thinking about. But also, this is TradingView, so I wanted to look at one of their largest investments: LUCID MOTORS.
At the moment, Saudi Arabia's Public Investment Fund (PIF) owns 60% of Lucid Motors, which also happens to be one of the up and coming electric vehicle companies. They are taking a more luxury route, trying to be THE premium brand in the EV space, costing 2x or 3x as much as a Tesla.
Nonetheless, while I currently think this investment is underwater, I do wonder about how much money the PIF and Saudi Arabia have to invest in this. Will they make it work? If they throw enough money at it can it survive?
The dilution does not look great.
The losses do not look great.
But if, and only if, Lucid can start delivering cars and actually hit a marketing campaign, if the product starts to stick, then maybe this has potential.
There are A LOT of ifs here. I have no position. But I am watching now. It's on my watchlist.
I also need to drive one... Testing it out would be the best next step. If you've ever driven a Lucid let me know.
At the moment, Saudi Arabia's Public Investment Fund (PIF) owns 60% of Lucid Motors, which also happens to be one of the up and coming electric vehicle companies. They are taking a more luxury route, trying to be THE premium brand in the EV space, costing 2x or 3x as much as a Tesla.
Nonetheless, while I currently think this investment is underwater, I do wonder about how much money the PIF and Saudi Arabia have to invest in this. Will they make it work? If they throw enough money at it can it survive?
The dilution does not look great.
The losses do not look great.
But if, and only if, Lucid can start delivering cars and actually hit a marketing campaign, if the product starts to stick, then maybe this has potential.
There are A LOT of ifs here. I have no position. But I am watching now. It's on my watchlist.
I also need to drive one... Testing it out would be the best next step. If you've ever driven a Lucid let me know.
Note
I forgot to mention the core point of this post as well: the PIF and Saudi turned their LIV investment into a PGA stake, which is surely a good trade for them going forward, for the long run. So I wonder what plans they have for Lucid.
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