Lucid Talking To Possible Tesla Investor?

AUG 20 2018 BY MARK KANE 17

Tesla is not the only EV company reportedly on Saudi PIF’s radar

While the eyes of investors are turned towards Tesla and Elon Musk’s idea to take it private at $420 per share, the Saudi Arabian sovereign wealth fund – PIF – possibly linked to the Tesla transaction, appears to be looking around for other possibilities for diversification from the oil business.

One of the new investments for PIF could be Lucid Motors – the small start-up from California that would like to repeat Tesla’s success through the introduction of luxury long-range electric cars, starting with the Air.

According to Reuters, early talks envisions taking majority stake of Lucid Motors by PIF for over $1 billion. However, the first tranche would be $500 million, and the rest would be divided into two smaller ones buyouts, dependent on certain milestones.

Because the deal with Tesla could be cash intensive, maybe PIF will limit its spending by trying to build up with Lucid.

“A deal with Lucid Motors would also be more in line with PIF’s limited resources, given that, despite its $250 billion in assets, PIF has already made substantial commitments to other technology companies or investments, including a $45-billion agreement to invest in a giant technology fund led by Japan’s SoftBank Group Corp (9984.T).”

Source: Reuters

Categories: Lucid

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17 Comments on "Lucid Talking To Possible Tesla Investor?"

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tftf

Reuters: “PIF and Lucid Motors have drawn up a term sheet under which PIF could invest more than $1 billion in Lucid Motors and obtain majority ownership, the sources said.”

How come Musk couldn‘t even produce a term sheet until now?

Looks like Lucid is further ahead and they don‘t tweet out „Funding secured.“

Let this sink in.

CDAVIS

@tftf said: “…Looks like Lucid is further ahead [Tesla]…”
———-

Lol… Further ahead?

Lucid, Faraday Future, Byton, EVelozcity, etc., all with EV concept prototypes that have yet to make it to commercial production.

Glad to see Lucid might get some needed funding. Hope the deal goes through and works out for both Lucid and PIF. The more EV competition the better.

In the mean time, Tesls is selling more EVs in North America and Western Europe than any other car maker by a wide margin. I think that puts Tesla “further ahead” of Lucid by a tad.

tftf

Further ahead with a deal with the PIF, term sheet etc.

Stop twisting what I refer to, thank you.

Where‘s Musk‘s term sheet or signed contract if funding was indeed secured?

The SEC and other agencies don‘t like backdated documents. Either the board or Musk can prove it had „funding secured“ at the time of the tweet or Musk is in big trouble. The board is already distancing itself from Musk due to huge potential liabilities.

CDAVIS

@tdtf said: “funding secured… Musk is in big trouble…”
_____________

… and there is the alarming report that the Tesla Model 3 24hr running production line was allegedly closed down for 3.5 hours on Wednesday for unknown reasons… and … and… and… Tesla is on fire! Get out while you can before World Tesla collapses!

Lol…..

In the mean time, Tesla is selling more EVs in North America and Western Europe than any other car maker by a wide margin.

Go figure….

Perhaps the fear, uncertainty, and doubt campaign against Tesla is not working as intended. That must be super frustrating for some.

tftf

Why do you keep switching topics?

Do you think a CEO can just tweet out “Funding secured” as he pleases – for the potentially largest going private deal ever?

Any such deal involves lots and lots of minutes and paperwork and contracts (or at least MoUs or term sheets prior to that).

So far, Tesla has produced NONE of these documents publicly (SEC filings etc.).

Compare Tesla’s and Lucid’s reaction. Lucid will likely keep quiet until a deal is done and signed – as any company should.

CDAVIS

@tftf said: “…Why do you keep switching topics?…”
———-

Why is it that before Tesla entered high production volume for Model 3 the anti-Tesla chant was it does not matter what Musk tweets.. what matters is Tesla reaching volume production.

Then after Tesla enters high volume production ( selling more EVs in North America and Western Europe than any other car maker by a wide margin) the anti-Tesla talking point is that what matters is not that Tesla has reached volume production but instead what Musk tweets.

Go figure…

ffbj

A side-show.

David Green

No surprise here… If PIF wants to get into EV, there are better and cheaper ways then investing in Tesla that has more debt then assets and crazy equity price.

CDAVIS

@ said: “… If PIF wants to get into EV, there are better and cheaper ways then investing in Tesla..”
———-

PIF *already* has a large investment position in Tesla… it’s an issue of how much larger an investment position PIF gains under what terms.

PIF investing in Lucid (if a deal goes through) is basically PIF buying a big dice roll at the starting line… not saying that’s a bad investment but with Lucid they are not investing in an existing EV production company… they are investing in an EV concept they hope makes it to successful production.

Rr

If they do go ahead with Lucid they are obviously not doing it to stop EVs

ffbj

It’s a point, but evs can’t be stopped. Slowed down perhaps, but the genie is out of the bottle. The cork has been popped, and the champagne is flowing, and these are some of my analogous things.

David Green

I am not sure about that in the USA… Europe and China I agree with you, but Americans are slow to change…

Chris O

FUD story, no doubt created to add further doubt about Tesla with a potential rival being able to tap into some serious money. Sadly for Lucid that unlike the less deserving Faraday future seems to have almost zero access to capital it’s luck is not about to change, just a pion in the anti Tesla game.

ffbj

So now are comments deleted if we correct spelling on a word? It’s peon, as in a peasant, not pion.
..and that was edited and deleted.

Haha.

PEON:

Spanish-American day laborer or unskilled farm worker.

(in South and Southeast Asia) someone of low rank.

PION:

a meson having a mass approximately 270 times that of an electron

Mistake I guess.

ffbj

Sorry. Maybe someone thought I was calling him a peon.

haha