Warren Redlich
AI Stocks Report, Equity & Options Strategies
Lucid is effectively at zero and headed for bankruptcy because its Saudi backers have stopped funding it. Uber's $300M investment in Lucid is now worth zero as well. A Zerohedge headline notes Lucid says AlixPartners has not recommended bankruptcy. x.com x.comÂ
Lucid's business model doesn't work because it loses money on every vehicle it sells. x.comÂ
Lucid is probably headed to zero, and Uber's $300 million bet on it, a moonshot to eventually compete with Waymo and Tesla in fully autonomous driving, looks like money tossed at a failing company. Yahoo Finance reports Lucid shares plunged on reports it is weighing going private or Chapter 11. x.comÂ
Rivian's R2 is going to flop, because once a carmaker goes low cost it is game over. Rivian is burning massive cash while the auto market weakens fast on rates and inflation, and its $21B market cap should be closer to Lucid's. x.comÂ
Lucid is a capital-burning machine with no sign of turning around, and its latest update does nothing to ease bankruptcy concerns. Free cash flow is negative $2.9 billion so far this year, accumulated losses total $17.6 billion, and the burn keeps growing. Lucid cites organizational changes, leadership transitions and $1.4 billion of identified 2026 cash-flow improvements, which are long overdue. x.com x.com x.com x.com x.com x.comÂ
Tesla's car business is ex-growth and in decline, and its financial numbers are dire. Per the Q3 earnings breakdown quoted in the post, total revenue was flat, automotive revenue fell 3% year over year, net income fell 43% and free cash flow fell 62%. x.com x.comÂ
Lucid looks to be in serious trouble after reports it hired AlixPartners, one of the world's biggest Chapter 11 restructuring firms. It has not filed for bankruptcy, and Lucid called the rumors false, citing liquidity well into next year, but hiring such a firm suggests otherwise. Elon Musk has long warned Lucid is tracking toward bankruptcy, and building millions of EVs at scale, controlling costs and turning a profit is far harder than designing an attractive car. x.com x.comÂ
Lucid's inevitable fate is to be acquired, ideally by a big automaker, because it builds a good car but cannot scale manufacturing to reach cash-flow breakeven. Its long-term chart resembles that of a pump-and-dump penny stock. x.com x.com x.comÂ
Lucid is not worth a penny, let alone $1 billion, without a clear path to profitability on limited capex. x.comÂ
Lucid is dead money as the EV hype cycle and subsidy tailwinds fade, especially under the Trump administration. Tesla is the only dominant EV player, and Rivian may survive long term only with near-flawless execution; everything else, including Lucid, is dead money. x.comÂ