Elon Musk Surprised by Resignation of Lucid’s CFO, Raises Questions about the Company’s Future
Tesla Inc CEO Elon Musk expressed surprise and curiosity on Monday in response to the resignation of Lucid Group Inc’s Chief Financial Officer, Sherry House. Musk’s reaction came after a Tesla enthusiast highlighted the news on social media, suggesting that Lucid’s only option for survival is to go private and rethink its strategy.
In a tweet, Musk simply responded with, “!” without offering any further details. This unexpected development has raised questions about the future of Lucid, a rival electric vehicle (EV) maker.
Last week, it was reported that Lucid would be removed from the Nasdaq 100 index, along with five other stocks, as part of the annual reconstitution. This news led to a decline in Lucid’s stock price. Additionally, the company announced the departure of its CFO, further adding to the uncertainty surrounding the company.
Interestingly, last month, Musk agreed with an enthusiast’s prediction that Lucid would be taken private in 2024. This statement from the Tesla CEO fueled speculation about Lucid’s future plans.
Financially, Lucid has been facing challenges. The company reported a quarterly loss of 28 cents per share and revenue of $137.8 million for the third quarter. It delivered 1,457 vehicles during the same period, resulting in a loss of over $433,000 per vehicle delivered. These figures raise concerns about the company’s ability to achieve profitability in the near future.
To align deliveries with production, Lucid has revised its vehicle production targets. The company now aims to produce only 8,000-8,500 vehicles this year, down from its initial projection of over 10,000 units.
It is important to note that Lucid is 60% owned by Saudi Arabia’s Public Investment Fund (PIF). The PIF has invested around $5.4 billion in Lucid since 2018. This ownership structure adds another layer of complexity to Lucid’s operations and raises questions about the potential influence of the PIF on the company’s decision-making.
Overall, the resignation of Lucid’s CFO and the company’s financial challenges have sparked uncertainty about its future. The surprise expressed by Elon Musk further adds to the intrigue surrounding Lucid’s path forward. As the EV industry continues to evolve and competition intensifies, it remains to be seen how Lucid will navigate these obstacles and whether it will be able to establish itself as a major player in the market.
Photo courtesy: Thomas Hawk on Flickr