Well, I think we got our answer on if yesterday’s sell-off was the start of another 1929 level Great Depression, or just an overreaction to good ole Warren Buffett.

The S&P 500 and Nasdaq both jumped 1.5%, while the Dow Jones rose by 431 points (that's 1.1% for those keeping score at home). 

Tech giants like Nvidia and Meta Platforms dusted off Monday's blues, climbing 5.6% and 5% respectively.

Over in Japan, the Nikkei 225 did a complete 180, soaring 10.2% after face-planting 12.4% the previous day. Yeah I’m not gonna even try to pretend I know what’s happening. The market does what it wants I guess.

Lucid Motors Gets a $1.5 Billion Lifeline from The Saudi Oil Empire Behind LIV Golf

Lucid Motors and their new announcement might have just put them on the map as a legit competitor to their big brothers Tesla and Rivian. 

The EV company, which has been limping along lately with a flat tire, reported earnings that beat expectations by a solid $8 million. And if that wasn't enough, they also announced a massive $1.5 billion investment from Saudi Arabia's Public Investment Fund (PIF). In an EV market where sales are slumping and Tesla's stock is down 20% in the last month, Lucid's news is a breath of fresh air for all you EV lovers.

Let’s look at the numbers shall we? Lucid delivered a record 2,394 vehicles in Q2, up 22% from Q1 and they brought in $200.6 million in revenue, surpassing Wall Street's estimate of $192 million. Sure, they still reported a loss of 29 cents per share, which missed the expected loss of 26 cents, but let’s look at this with the glass half full POV. Beating revenue estimates in a market where dealers are giving EVs the cold shoulder is no small feat.

Now, let’s talk about that $1.5 billion investment. The PIF, you know the same folks stirring up the golf world with LIV Golf and paying their players guaranteed 9 figure deals to leave the PGA tour, decided to throw Lucid a major lifeline. Ironically, it’s all oil money. This includes a $750 million loan facility and another $750 million in convertible preferred stock. This isn't just a nice gesture; it’s a lifesaver that gives Lucid enough runway until at least Q4 2025.

(Source: Golf Magazine)

CEO Peter Rawlinson is, understandably, pretty pumped. He’s talking about momentum and gearing up for the launch of their first electric SUV, the Gravity, later this year. This new SUV, starting at under $80,000, is expected to be a big hit. Rawlinson shared a video of the first Gravity prototype rolling off the assembly line, hyping it up as a significant leap forward in tech and design.

(Source: Out of Spec Reviews)

Lucid ended the quarter with a hefty $4.28 billion in liquidity. With the new Saudi investment, they’ve got a nice cushion to support their ambitious plans. But let’s not forget, the EV market is brutal, and consumer interest can be unpredictable. In 2020, it seemed like everyone wanted an electric car, now people would rather ride bikes than buy something they have to charge.

Lucid’s stock, which has been battered over the past year, saw a nearly 10% bump following the announcement. However, let’s not get ahead of ourselves. It’s still down 50% over the past 12 months. Investors have been worried about whether Lucid could survive long enough to see the Gravity SUV hit the market. With this new influx of cash, it looks like they’ve bought themselves some time.

Despite all the good news, Lucid still has a mountain to climb. They need to build another 5,163 EVs this year to meet their 9,000 vehicle production target for 2024. And while they make sweet rides that also boast a record 146 MPGe EPA estimated range, having a cool car with those numbers isn’t enough – they need people to buy it.

Looking ahead, Lucid plans to expand into the mass market with a lower-priced midsize SUV slated for production in late 2026. They’re banking on their tech advantage to help them stand out in a crowded market.

While it seems like the EV headlines are often dominated by Tesla’s every move, Lucid Motors just reminded us all that they’re still very much in the game. With a surprise earnings beat and a substantial investment from Saudi Arabia’s oil money, they’ve bought themselves time and resources to continue their plan of taking down Tesla as the #1 EV-maker in the world. Whether they can capitalize on this momentum and truly disrupt the EV market remains to be seen, but one thing’s for sure – Elon is gonna have to take the company seriously, no matter how many memes he wants to post about them on X.

(Source: Business Insider)

Stock.News has positions in Tesla and Meta.