Funding Secured: Saudi Wealth Fund to Invest $1 Billion in Tesla's RIval Lucid to build its EV factory

Last two years Lucid Motors struggled to secure the funding for its plan for a massive EV factory in Arizona. Now the startup secured an investment of over $1 billion from Saudi Arabia’s sovereign wealth fund, months after building a stake in Tesla. 

The deal clinches crucial funding needed for Lucid to start making its first model, the Air sedan, in 2020. Lucid said that it plans to use the new funds to “complete engineering development and testing of the Lucid Air, construct its factory in Casa Grande, Arizona, begin the global rollout of its retail strategy starting in North America, and enter production for the Lucid Air.”

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Casa Grande sits about 25 miles South of Phoenix and perhaps 35 miles North of Tuscon, so it can draw from a large labor pool in both cities, additional to the 48,000 town residents locally.  It also sits at the junction of two Interstates, the I-8 to San Diego and the I-10 to Los Angeles, both prime markets for an all-electric car, mostly because of privileged access to the bus lanes on those highways there.   This makes a lot more sense than what Elon Musk did, setting up a factory out in the desert, with no town to speak of, and no labor pool to draw from.  What this tells me is that the folks behind Lucid Motors are more practical than old Elon. 

With a fresh billion to go play with, you can bet these guys will be up and running with their auto soon enough.  Look out, Tesla. 

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Check out the "optional"  55-degree tilt-back rear seats, you can stretch out back there and have a nice snooze, while your chauffeur tools along:

image.thumb.png.f26a4c36d164cb1f3481ffece80b6f8c.png

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4 hours ago, Jan van Eck said:

Check out the "optional"  55-degree tilt-back rear seats, you can stretch out back there and have a nice snooze, while your chauffeur tools along:

image.thumb.png.f26a4c36d164cb1f3481ffece80b6f8c.png

Lucid Air does appear to have a more pleasing looking interior, although it's hard to tell with just pictures.  Not sure how I feel about the cloth they use for the knee bolsters on the center console and the rear of the seats. The dash is quite pleasing to my eyes though. I would certainly be more open to giving it a shot than the Model 3 interior.

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If I'm right they are only making about 250 or so of the first run, and those aren't expected for at least a year from now. Tesla has some time to get together. 
 

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They should have invested $2 billion. No, $20 billion, in fact. Would've been much better.

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The Saudis are very serious about this, but we also have to consider that while there are voices trying to moderate MbS in these investment choices, they don't have as much sway as they would like. He's really gunning for a huge EV picture in Saudi. 

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16 hours ago, BlackTortoise said:

If I'm right they are only making about 250 or so of the first run, and those aren't expected for at least a year from now. Tesla has some time to get together. 
 

And Musk has some time to address his mental health concerns.

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4 hours ago, TraderTate said:

The Saudis are very serious about this, but we also have to consider that while there are voices trying to moderate MbS in these investment choices, they don't have as much sway as they would like. He's really gunning for a huge EV picture in Saudi. 

Are they really, though? Hard to tell what's just window dressing for their booming oil industry. Now that oil prices are back up, I would think their (and everyone's except China's and other major oil importers) interest in alternatives to oil would wane somewhat.

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(edited)

8 hours ago, Rodent said:

Are they really, though? Hard to tell what's just window dressing for their booming oil industry. Now that oil prices are back up, I would think their (and everyone's except China's and other major oil importers) interest in alternatives to oil would wane somewhat.

Not really.  The Saudis have long been wrinkled that their prized product is not being used for plastics and medicines, and is just being burnt for fuel. It enrages them that a little bottle of water (the spring-water stuff) sells for more than their refined oil as gasoline or heating oil.   For the Saudis, the logical evolution would be to construct numbers of nuke plants for power and desalinization, and sell the oil for top dollar as a specialty product.  

Then again, maybe this latest generation just shrugs its shoulders and contents itself with counting the money. 😀

Edited by Jan van Eck
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