WEBVTT - Lucid Motors CEO and CTO Peter Rawlinson Talks Raising Money For Continued Growth

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Lucid shares are off to a heart start this month.

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<v Speaker 2>They're up nearly twenty percent since July first. The shares

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<v Speaker 2>are rallying after the ev startup announced second quarter deliveries

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<v Speaker 2>and production targets above expectations. Joining us now, I'm pleased

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<v Speaker 2>to say, live from the Bank of America Breakthrough Technology

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<v Speaker 2>Dialogue is Lucid CEO and CTO Peter Rollins with Bloomberg's

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<v Speaker 2>Tom mackenzie.

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<v Speaker 3>Tom, Danny, thank you. It's very timely actually because the

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<v Speaker 3>Festival of Speed is happening as we speak as well,

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<v Speaker 3>so a lot of auto there's a lot of petrol

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<v Speaker 3>heads here, but we're all talking about petrol.

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<v Speaker 1>We're talking about evs and as.

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<v Speaker 3>You say, the CEO of Lucid joining me now, which

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<v Speaker 3>is a fantastic conversation, we hope, Danny, I'm going to

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<v Speaker 3>bring you that now, Peter Willings and the CEO of

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<v Speaker 3>course of Lucid. Let's start then with the production delivery numbers,

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<v Speaker 3>as Danny was saying, stronger than the markets expected. The

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<v Speaker 3>shares have had a lift on the back of this,

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<v Speaker 3>and we compare that as well. We bring in the

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<v Speaker 3>Tesla story because they come in with slightly better numbers

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<v Speaker 3>as well in recent days. Is this a sign that

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<v Speaker 3>the EV market is starting to turn around?

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<v Speaker 1>Peter? It certainly is.

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<v Speaker 4>For us.

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<v Speaker 5>We're about seventy percent quarter on quarter with a record

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<v Speaker 5>delivery in Q two on the back of another record

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<v Speaker 5>delivery in Q one. Things are looking up, and I

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<v Speaker 5>think more people are getting the message that we have

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<v Speaker 5>an extraordinary product in lucid Air, and everyone's also looking

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<v Speaker 5>for it, looking forward to our new.

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<v Speaker 4>Suv, the Gravity, which is coming later this year.

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<v Speaker 3>Give us an update on the Gravity, because I know.

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<v Speaker 1>Analysts are looking at as well.

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<v Speaker 3>They see that as consequential, really consequential for your story

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<v Speaker 3>longer term. So the Gravity suv is production on track?

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<v Speaker 3>What is the timeframe? What is demand looking like?

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<v Speaker 4>It is schedule four started production late this year.

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<v Speaker 5>We're seeing an incredible late demand because this is an

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<v Speaker 5>unprecedented product. It has a range of attributes which really

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<v Speaker 5>have no right to coexist. It has the driving dynamics

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<v Speaker 5>superior to a Lamborghini Urus. It has the present stance

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<v Speaker 5>of a range rover, It has more interior space than

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<v Speaker 5>an Escalade, and yet it is only a slightly small

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<v Speaker 5>lot on the outside than our Lucid Air. It's a

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<v Speaker 5>seven seat, three row suv. This is what the market

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<v Speaker 5>has been waiting for.

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<v Speaker 3>Okay, that's a very good sales pitch there, Peter, talk

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<v Speaker 3>to us about the margin story, the profitability.

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<v Speaker 1>Then at what point can you start to.

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<v Speaker 3>Raise prices for your vehicles and start to push margins

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<v Speaker 3>out of negative territory.

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<v Speaker 5>Well, we're able to bring a successively more attainable products

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<v Speaker 5>to market where our range now starts at just sixty

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<v Speaker 5>nine nine hundred dollars, and we're able to do that

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<v Speaker 5>because we've got the most advanced technology in the world.

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<v Speaker 5>Let me explain, we're able to go further with less

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<v Speaker 5>battery energy than anyone else.

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<v Speaker 4>I recently announced that we hit the magic five miles

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<v Speaker 4>per kilowatt hour.

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<v Speaker 5>Landmark, and we're going to reveal a product which achieves

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<v Speaker 5>that very soon. We're actually at four point seven four

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<v Speaker 5>miles per kill a lot hour here today with our

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<v Speaker 5>pure electric vehicle. Now, that pure variant has a range

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<v Speaker 5>of four hundred and nineteen miles, more range than anyone

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<v Speaker 5>else in the marketplace, but it does it with just

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<v Speaker 5>an eighty eight killer our battery pack, and that makes

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<v Speaker 5>it the most sustainable vehicle on the market today. Any

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<v Speaker 5>journey you take, that car uses less electricity to go

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<v Speaker 5>from A to B than.

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<v Speaker 4>Anything else in the world today.

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<v Speaker 1>That's on the mass market, okay.

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<v Speaker 5>And that means we can have less minerals, less dependence

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<v Speaker 5>upon mines around the world, less dependence upon sources of lithium, nickel, cobalt.

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<v Speaker 4>And this is what the world needs.

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<v Speaker 5>More efficient, more energy efficient, and more high tech evs

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<v Speaker 5>and Lucid is leading the way in this respect.

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<v Speaker 3>Okay, five miles per killer? What ours you say? A

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<v Speaker 3>magic numbers? You allow Martin number as you've described it.

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<v Speaker 3>You are, of course backed by Arabia, the Public Investment

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<v Speaker 3>Fund of Saudia to the tune of about six point.

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<v Speaker 1>Four billion US dollars. Is it fair to assume.

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<v Speaker 3>That you're going to need to raise a similar amount

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<v Speaker 3>around six billion dollar level to push forward into the future.

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<v Speaker 3>Is that about an appropriate number to be thinking about

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<v Speaker 3>in terms of future funding.

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<v Speaker 5>We haven't guided on the actual quantum, but let me

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<v Speaker 5>tell you this is a capital invents intensive business and

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<v Speaker 5>we do need to raise more money and we will

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<v Speaker 5>at opportune moments in time on the future. Our vision

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<v Speaker 5>is to be a major player here or the SUV

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<v Speaker 5>this year. And we've got the mid sized platform coming

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<v Speaker 5>late twenty six and that's going to be a high

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<v Speaker 5>volume vehicle mass produced both in the US and in

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<v Speaker 5>Saudi Arabia.

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<v Speaker 3>And you've talked about being in this for the long

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<v Speaker 3>run with the PIF with Saudi Arabia. Is there a

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<v Speaker 3>line that they draw somewhere, Peter, where they say, Okay.

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<v Speaker 1>This is enough.

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<v Speaker 5>Look, they're the perfect long term partners. We share a

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<v Speaker 5>long term vision and we mutually incentivize for six They

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<v Speaker 5>want this as much as I do.

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<v Speaker 1>Watch this space.

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<v Speaker 5>They're in for the long term, and this transcends a

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<v Speaker 5>mere financial investment. We are a cornerstone of them realizing

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<v Speaker 5>their bold vision twenty thirty where they transitioned their quintessential

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<v Speaker 5>fossil fuel economy to an environmentally sustainable economy.

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<v Speaker 3>Okay, when you say watch this space, I something's going

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<v Speaker 3>off from my mind suggesting that maybe they're going to

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<v Speaker 3>come through with another check soon from the saudiast for

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<v Speaker 3>the business.

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<v Speaker 1>Talk to me about talk to me.

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<v Speaker 3>About the deal you did with Aston Martin, because it's interesting.

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<v Speaker 3>So you've licensed some of your technology to asked in

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<v Speaker 3>Martin talk to talks about the consequences they have delayed

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<v Speaker 3>their evs. Does that have an impact on that deal?

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<v Speaker 3>Does that have an impact on LOCID?

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<v Speaker 4>Very mildly, but the deal is very strong.

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<v Speaker 5>It secures them high tech electric technology for the next decade.

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<v Speaker 5>We're supplying them with modules for the battery pack, wonder

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<v Speaker 5>box charging, two way charging technology, and our Sapphire drive units.

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<v Speaker 5>These are the world's finest drive units and it's appropriate

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<v Speaker 5>that as to not get the really top end stuff

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<v Speaker 5>from our range, the hypercar high performance. If you look

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<v Speaker 5>at the future, though, it gets a lot more exciting.

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<v Speaker 1>Were you disappointed if they delayed their EV.

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<v Speaker 5>Well, absolutely, Any delay in any EV is less than ideal.

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<v Speaker 5>But it's going to come and we have secured their

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<v Speaker 5>electric hypercar future for the next decade.

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<v Speaker 1>Is that a template for other licenses?

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<v Speaker 5>I hope it is, and it's actually initiated a lot

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<v Speaker 5>more interest.

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<v Speaker 4>We are in discussions with others.

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<v Speaker 5>And when it gets really exciting is you look at

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<v Speaker 5>the technology that we're developing now from a mid sized

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<v Speaker 5>platform for late twenty six that really suits mess market,

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<v Speaker 5>family car and applications.

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<v Speaker 1>That's why we're in this.

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<v Speaker 5>We're not here to be a niche player, loose it

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<v Speaker 5>here to bring down the cost of electric vehicle for

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<v Speaker 5>the benefit of all and be a major player.

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<v Speaker 3>And Rivian doing an interesting deal with Volkswagen in investment

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<v Speaker 3>from VW into Rivian in exchange for some technology. Is

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<v Speaker 3>that something you would consider that kind of partnership, that

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<v Speaker 3>kind of deal.

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<v Speaker 5>I'm always interested in partnerships which involve our technology.

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<v Speaker 3>Okay, we talked about the gravity the SUV coming online.

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<v Speaker 3>You talk about production the end of this year, deliveries

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<v Speaker 3>next year. Then what about manufacturing in Saudi Arabia. That's

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<v Speaker 3>part of a process outside of Jeddi. You're putting the

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<v Speaker 3>car together there. But in terms of full term manufacturing

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<v Speaker 3>in Saudi Arabia does that when does that come online?

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<v Speaker 3>And what is the challenge in Saudi Arabia is the

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<v Speaker 3>challenge around talent.

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<v Speaker 5>There's always a challenge around talent because as a company,

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<v Speaker 5>we're only as good as the brain pawer that we

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<v Speaker 5>can attract. That you know, no company in its own

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<v Speaker 5>right has experienced. It's only the brilliance of the employees

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<v Speaker 5>that represent the capability of a company. But we already

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<v Speaker 5>have the very first car plant operating in Saudi Arabia

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<v Speaker 5>right this moment. It is running, and that is a

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<v Speaker 5>kit assembly plant on a very modest scale. We are

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<v Speaker 5>actually laying the foundations for our major plant which will

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<v Speaker 5>be scaled for one hundred and fifty thousand unit capacity

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<v Speaker 5>per annum as we speak, and that is scheduled to

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<v Speaker 5>be ready for production late twenty six, where we'll put

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<v Speaker 5>our mid sized vehicle into that plant.

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<v Speaker 1>Okay, Peter Rolinson, thank you very much.

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<v Speaker 3>In the CTEO and CEO of lucid On not wanting

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<v Speaker 3>to be a niche brand within EVS and hitting that

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<v Speaker 3>five mile per kilowatts in terms of the rage for

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<v Speaker 3>their vehicles looking head

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<v Speaker 1>Of course to the SUV as well the gravity