1
00:00:00,120 --> 00:00:02,360
Speaker 1: We'll take a pit stop to check in on Lucid.

2
00:00:02,400 --> 00:00:05,120
Speaker 2: The stock off to the races after announcing a one

3
00:00:05,120 --> 00:00:08,400
Speaker 2: and a half billion dollar investment from Saudi Arabia's Public

4
00:00:08,440 --> 00:00:11,360
Speaker 2: Investment Fund. The investment comes as the ev maker beat

5
00:00:11,440 --> 00:00:15,440
Speaker 2: second quarter expectations on revenue and vehicles delivered.

6
00:00:15,480 --> 00:00:16,960
Speaker 1: Joining us now as Peter Rollinson.

7
00:00:17,120 --> 00:00:20,759
Speaker 2: He is the CEO as well as the CTO of Lucid. Peter,

8
00:00:20,880 --> 00:00:23,560
Speaker 2: great to have you on the program. Let me add

9
00:00:23,640 --> 00:00:26,800
Speaker 2: us first about this cash injection. I think the biggest

10
00:00:26,880 --> 00:00:31,040
Speaker 2: question investors have is, you know, do you have the

11
00:00:31,200 --> 00:00:36,120
Speaker 2: money to get through this difficult period and to profitability

12
00:00:36,159 --> 00:00:38,360
Speaker 2: kind of on the other side. How far away is

13
00:00:38,400 --> 00:00:41,440
Speaker 2: that profitability on the other side, what's the plan look like?

14
00:00:42,040 --> 00:00:45,879
Speaker 3: Well, Matt, you're referencing the one point finally billion dollars

15
00:00:45,920 --> 00:00:49,720
Speaker 3: that we received from the Public Investment Fund yesterday, which

16
00:00:49,720 --> 00:00:53,280
Speaker 3: we announced, and this will secure our financial runway well

17
00:00:53,320 --> 00:00:57,240
Speaker 3: through the Q full of twenty twenty five. And this

18
00:00:57,360 --> 00:00:59,560
Speaker 3: is significant for a number of reasons. First of all,

19
00:00:59,760 --> 00:01:03,280
Speaker 3: it is the resounding endorsement and the public investment funds

20
00:01:03,640 --> 00:01:06,840
Speaker 3: faith in Lucid. I'd like to think they see us

21
00:01:06,880 --> 00:01:10,760
Speaker 3: as the true technology leaders in this space, and that's

22
00:01:10,760 --> 00:01:15,479
Speaker 3: a cornerstone of the relationship. And also we are key

23
00:01:15,760 --> 00:01:18,840
Speaker 3: to them realizing their vision twenty thirty.

24
00:01:19,720 --> 00:01:22,440
Speaker 4: But also this funding.

25
00:01:22,160 --> 00:01:25,720
Speaker 3: Sees us through not just the launch of our Lucid Gravity,

26
00:01:26,440 --> 00:01:29,920
Speaker 3: but through the crucial remp up period which sees us

27
00:01:30,000 --> 00:01:31,960
Speaker 3: right through twenty twenty five.

28
00:01:32,200 --> 00:01:34,360
Speaker 4: It makes a huge difference to us.

29
00:01:34,920 --> 00:01:39,000
Speaker 2: So we always talk about the forty thousand dollars or

30
00:01:39,319 --> 00:01:41,679
Speaker 2: so that Rivian loses on the sale of every one

31
00:01:41,680 --> 00:01:43,959
Speaker 2: of its vehicles. I don't know how much you lose

32
00:01:44,000 --> 00:01:45,640
Speaker 2: on the sale of each lucid Air, but it's got

33
00:01:45,680 --> 00:01:48,080
Speaker 2: to be a lot more because your burn rate is

34
00:01:48,120 --> 00:01:51,240
Speaker 2: about the same and you sell far fewer vehicles. When

35
00:01:51,280 --> 00:01:55,120
Speaker 2: will you start making money on the products that you sell?

36
00:01:55,240 --> 00:01:58,400
Speaker 2: On the lucid Air that we're looking at in video

37
00:01:58,480 --> 00:02:01,560
Speaker 2: right now, it's beautiful review Viewers absolutely love the vehicle,

38
00:02:01,840 --> 00:02:05,120
Speaker 2: they love your technology, but it's very costly.

39
00:02:05,200 --> 00:02:07,840
Speaker 1: The Gravity, I'm sure will be the same story.

40
00:02:07,840 --> 00:02:09,639
Speaker 2: When are you going to start making money on each

41
00:02:09,680 --> 00:02:11,440
Speaker 2: of these vehicles that you sell?

42
00:02:11,560 --> 00:02:14,640
Speaker 3: So there's a misleading narrative here mat that all those

43
00:02:14,680 --> 00:02:17,800
Speaker 3: costs are the costs of creating the car or the

44
00:02:17,840 --> 00:02:20,840
Speaker 3: cost of our technology, and that's simply not true. So

45
00:02:21,080 --> 00:02:25,120
Speaker 3: much of our finances are due to a long term investment.

46
00:02:25,560 --> 00:02:29,600
Speaker 3: We've just completed or very nearly completed, a three million

47
00:02:29,680 --> 00:02:33,480
Speaker 3: dollar buildout of our state of the art factory in Arizona.

48
00:02:33,760 --> 00:02:36,520
Speaker 3: We've brought it in logistics, we've brought it in even

49
00:02:36,639 --> 00:02:41,440
Speaker 3: stamping into a vertically integrated operation, and we've really expanded

50
00:02:41,480 --> 00:02:45,640
Speaker 3: and brought under one roof the world's most advanced powertrain

51
00:02:46,040 --> 00:02:47,600
Speaker 3: manufacturing capability.

52
00:02:47,800 --> 00:02:49,680
Speaker 4: No one has a facility quite like this.

53
00:02:50,080 --> 00:02:53,720
Speaker 3: And also then we're building out a factory in Saudi

54
00:02:53,720 --> 00:02:57,440
Speaker 3: Arabia which we'll have a capacity for one hundred and

55
00:02:57,560 --> 00:03:00,960
Speaker 3: fifty thousand units per annum. On top of that, we

56
00:03:01,000 --> 00:03:03,200
Speaker 3: have the investment of bringing what I believe will be

57
00:03:03,240 --> 00:03:08,280
Speaker 3: the world's best SUV, the Lucid Gravity, to freition, schedule

58
00:03:08,320 --> 00:03:12,200
Speaker 3: for starter production later this year. And then we're also

59
00:03:12,240 --> 00:03:16,399
Speaker 3: building out ourselves in service network and investing in our

60
00:03:16,480 --> 00:03:19,079
Speaker 3: mid sized platform, which is going to be a lendmark

61
00:03:19,120 --> 00:03:22,240
Speaker 3: product for US as schedule for start of production late

62
00:03:22,280 --> 00:03:26,120
Speaker 3: twenty six. So with all those investments for the long term,

63
00:03:26,400 --> 00:03:30,520
Speaker 3: that's what's dominating our finance. And this is falsely read

64
00:03:30,600 --> 00:03:34,120
Speaker 3: as it's costing too much. We've got the best technology

65
00:03:34,120 --> 00:03:36,600
Speaker 3: in the world and it is cost effective technology.

66
00:03:36,960 --> 00:03:39,480
Speaker 4: We can manufacture this, make no.

67
00:03:39,520 --> 00:03:40,480
Speaker 1: Mistake, Peter.

68
00:03:41,040 --> 00:03:43,440
Speaker 5: Another question I have for you here is going back

69
00:03:43,440 --> 00:03:46,400
Speaker 5: to what that was initially asking. On one hand, here

70
00:03:46,480 --> 00:03:50,320
Speaker 5: your investments can obviously be seen at scale that you

71
00:03:50,360 --> 00:03:53,200
Speaker 5: have this one point five billion dollar infusion. It's a

72
00:03:53,200 --> 00:03:55,600
Speaker 5: significant amount of money. You said it all last year

73
00:03:55,880 --> 00:03:58,360
Speaker 5: through the end of next year to really make a

74
00:03:58,360 --> 00:04:02,119
Speaker 5: lot of progress here. But how important is profitability to you?

75
00:04:02,520 --> 00:04:05,320
Speaker 5: When is free cash flow going to be at more

76
00:04:05,480 --> 00:04:07,160
Speaker 5: of a sustainable pace?

77
00:04:08,080 --> 00:04:11,360
Speaker 3: Totally a profitability is the end game for US away

78
00:04:11,520 --> 00:04:14,760
Speaker 3: and it's all about scale. We haven't guided precisely when,

79
00:04:15,000 --> 00:04:17,080
Speaker 3: but it is all about scale, and we have four

80
00:04:17,120 --> 00:04:20,799
Speaker 3: steps to get to true scale. One is to grow

81
00:04:21,000 --> 00:04:24,200
Speaker 3: brand awareness so we sell more Lucid airs and we

82
00:04:24,360 --> 00:04:28,400
Speaker 3: just come off two record quarters of deliveries. Q one

83
00:04:28,480 --> 00:04:30,799
Speaker 3: was a record for US, Q two was a record

84
00:04:31,080 --> 00:04:34,840
Speaker 3: and with that seventy percent up on our Q two

85
00:04:35,040 --> 00:04:38,920
Speaker 3: of twenty twenty three, we're out selling our core German

86
00:04:39,080 --> 00:04:43,800
Speaker 3: competitors in the US very significantly, and this is not

87
00:04:44,120 --> 00:04:48,200
Speaker 3: really fully appreciated. Then we've got our gravity or Lucid

88
00:04:48,200 --> 00:04:51,679
Speaker 3: Gravity coming late this year that will have a total

89
00:04:51,680 --> 00:04:56,080
Speaker 3: addressable market of six times a sedan. Then we have

90
00:04:56,440 --> 00:05:01,120
Speaker 3: our midsized platform, potentially a total addressable market thirty times.

91
00:05:01,440 --> 00:05:03,400
Speaker 3: And on top of that, the icing on the cake

92
00:05:03,720 --> 00:05:05,839
Speaker 3: is if we can get some more licensing or supply

93
00:05:05,960 --> 00:05:09,960
Speaker 3: deals with another automaker for our world leading technology.

94
00:05:10,120 --> 00:05:11,600
Speaker 4: It is all about.

95
00:05:11,320 --> 00:05:15,360
Speaker 5: Scale, you know, speaking of gravity as well. You mentioned

96
00:05:15,440 --> 00:05:17,760
Speaker 5: later this year, but what do you think early demand

97
00:05:17,839 --> 00:05:20,760
Speaker 5: will look like and what exactly are you planning on

98
00:05:20,839 --> 00:05:22,320
Speaker 5: opening up those reservations.

99
00:05:23,279 --> 00:05:27,640
Speaker 3: I can't wait because the response I'm elicitating is that

100
00:05:27,960 --> 00:05:30,720
Speaker 3: people just want to buy this thing. When people first

101
00:05:30,720 --> 00:05:33,640
Speaker 3: saw the air, they thought it was an amazing technological product.

102
00:05:34,040 --> 00:05:36,560
Speaker 3: But when they see Gravity, they say, when can I

103
00:05:36,560 --> 00:05:36,960
Speaker 3: buy it?

104
00:05:37,279 --> 00:05:38,240
Speaker 4: And that's the difference.

105
00:05:38,520 --> 00:05:41,200
Speaker 3: This is the product that all America is waiting for,

106
00:05:41,360 --> 00:05:44,080
Speaker 3: is yearning for. I think the market's going to be huge,

107
00:05:44,200 --> 00:05:46,840
Speaker 3: and there's nothing quite like it. It's got the driving

108
00:05:46,920 --> 00:05:50,400
Speaker 3: dynamics or blow off of a Lamborghini Urus, it's got

109
00:05:50,440 --> 00:05:53,320
Speaker 3: the poison stature of a range Rover, and it's got

110
00:05:53,320 --> 00:05:55,520
Speaker 3: more leg room than even an Escalade, and it's a

111
00:05:55,560 --> 00:06:00,159
Speaker 3: really compact car usable in metropolis on the outside, so

112
00:06:00,160 --> 00:06:00,880
Speaker 3: there's never been.

113
00:06:00,800 --> 00:06:01,599
Speaker 4: Anything quite like this.

114
00:06:01,720 --> 00:06:01,880
Speaker 1: Now.

115
00:06:01,920 --> 00:06:05,480
Speaker 3: Regarding when we first start taking orders, we will do

116
00:06:05,600 --> 00:06:08,159
Speaker 3: so it's sometime between now.

117
00:06:08,040 --> 00:06:10,320
Speaker 4: And startup production. Watch this space.

118
00:06:10,640 --> 00:06:13,120
Speaker 3: I don't want to go too early with this because

119
00:06:13,160 --> 00:06:16,440
Speaker 3: I think some car companies have gone too early and

120
00:06:16,440 --> 00:06:19,240
Speaker 3: they've done a disservice to their customers. We want to

121
00:06:19,279 --> 00:06:22,520
Speaker 3: see a line of sight to deliveries from that point

122
00:06:22,680 --> 00:06:26,080
Speaker 3: in time where we take the first free.

123
00:06:25,760 --> 00:06:28,279
Speaker 4: Orders, but that's going to happen. Watch this space.

124
00:06:29,200 --> 00:06:30,640
Speaker 1: Are you concerned about demand?

125
00:06:30,640 --> 00:06:35,400
Speaker 2: I mean, obviously at the very top and.

126
00:06:34,440 --> 00:06:35,360
Speaker 1: People are wealthy.

127
00:06:35,400 --> 00:06:38,599
Speaker 2: People are willing to dip their toe in the EV

128
00:06:38,800 --> 00:06:42,640
Speaker 2: market and buy a luxury product. But if you look

129
00:06:42,800 --> 00:06:45,960
Speaker 2: at a lower price vehicle, which is i'm sure in

130
00:06:46,000 --> 00:06:49,560
Speaker 2: your future, the infrastructure just isn't there and the demand

131
00:06:49,560 --> 00:06:50,520
Speaker 2: doesn't seem to be there.

132
00:06:50,560 --> 00:06:51,480
Speaker 1: How do you work on that.

133
00:06:52,400 --> 00:06:54,200
Speaker 4: Well, I think we're going through a blip right now.

134
00:06:54,240 --> 00:06:57,320
Speaker 3: I think that demand is a function of people's experience

135
00:06:57,440 --> 00:07:01,200
Speaker 3: with evs, and there's been a lot of par evs.

136
00:07:01,480 --> 00:07:04,960
Speaker 3: People are experiencing the lucid air and more and more

137
00:07:05,000 --> 00:07:08,120
Speaker 3: people are becoming aware of how awesome it is. Our

138
00:07:08,160 --> 00:07:11,640
Speaker 3: sales are up seventy percent. We're not seeing a dip

139
00:07:11,640 --> 00:07:15,080
Speaker 3: in demand, and we're not seeing problems manufacturing. We can

140
00:07:15,120 --> 00:07:17,240
Speaker 3: make them. It's all to do with the market.

141
00:07:17,640 --> 00:07:20,080
Speaker 4: So when we go to a more affordable car, I

142
00:07:20,080 --> 00:07:22,240
Speaker 4: think there's a huge lightened demand there.

143
00:07:22,520 --> 00:07:25,440
Speaker 3: And also when we talk about infrastructure, a lot of

144
00:07:25,440 --> 00:07:27,640
Speaker 3: that is the draw on the grid, because we've got

145
00:07:27,720 --> 00:07:30,320
Speaker 3: the most advanced technology in the world. We just announced

146
00:07:30,560 --> 00:07:34,720
Speaker 3: a landmark, a record breaking five miles per kilo water Air,

147
00:07:35,160 --> 00:07:38,760
Speaker 3: the most energy efficient car in the world. The lucid

148
00:07:38,760 --> 00:07:42,000
Speaker 3: Air behind me. Lucid Air Pure can do five miles

149
00:07:42,000 --> 00:07:44,480
Speaker 3: per killer. What app That means there's less draw on

150
00:07:44,520 --> 00:07:47,640
Speaker 3: the grid, less need for electricity. This is the advancement

151
00:07:47,680 --> 00:07:48,520
Speaker 3: that we can make.

152
00:07:49,800 --> 00:07:52,160
Speaker 5: You know, we are very close to a presidential all

153
00:07:52,200 --> 00:07:55,000
Speaker 5: action here in the United States, and of course the

154
00:07:55,040 --> 00:07:57,480
Speaker 5: Trump ticket has been somewhat critical of some of the

155
00:07:57,560 --> 00:07:59,640
Speaker 5: changes being made in the United States when it comes

156
00:07:59,640 --> 00:08:02,800
Speaker 5: to a vehicles and the infrastructure around it. Do you

157
00:08:02,960 --> 00:08:06,520
Speaker 5: think that any potential change in administration could mean a

158
00:08:06,560 --> 00:08:07,760
Speaker 5: difference for your business.

159
00:08:08,800 --> 00:08:12,480
Speaker 3: Well, look, I'm politically agnostic here, but I've got relentless

160
00:08:12,480 --> 00:08:16,080
Speaker 3: faith that common sense will prevail and the market will

161
00:08:16,080 --> 00:08:19,640
Speaker 3: prevail market forces. More and more people are realizing that

162
00:08:19,680 --> 00:08:24,280
Speaker 3: a carlike ours is an inherently superior experience to a

163
00:08:24,280 --> 00:08:25,480
Speaker 3: gasoline counterpart.

164
00:08:25,920 --> 00:08:26,320
Speaker 4: Whether you.

165
00:08:27,800 --> 00:08:31,080
Speaker 3: Invest in a car like this for its environmental credentials,

166
00:08:31,120 --> 00:08:34,640
Speaker 3: which are profound, or for the driving pleasure, it's.

167
00:08:34,480 --> 00:08:36,199
Speaker 4: A superior experience.

168
00:08:36,600 --> 00:08:41,400
Speaker 3: So unlike someone else, I'm not being distracted by politics.

169
00:08:41,600 --> 00:08:45,320
Speaker 3: I'm relentlessly driving to create the best product for the customer.

170
00:08:45,440 --> 00:08:48,280
Speaker 5: Peter Alison, Lucid, we thank you very much, of course,

171
00:08:48,320 --> 00:08:50,840
Speaker 5: on the heels of earnings and a one point five

172
00:08:51,120 --> 00:08:53,880
Speaker 5: billion dollar check here from a division of the Saudi

173
00:08:53,880 --> 00:08:55,240
Speaker 5: Arabian Public Investment Fund