Elon Musk Says 'Saudi Sugar Daddy' Is Only Thing Keeping Lucid Alive, Warns Of Possible Rivian Bankruptcy Within 6 Quarters
Portfolio Pulse from Anan Ashraf
Elon Musk criticized Lucid Group Inc (LCID) and Rivian Automotive Inc (RIVN) following their quarterly earnings reports. Musk highlighted Lucid's reliance on Saudi Arabia's Public Investment Fund (PIF) for financial support, referring to it as 'Saudi sugar daddy' and commented on Lucid's market cap being significantly lower than Tesla's. He also warned that Rivian might face bankruptcy within six quarters due to its current trajectory, despite acknowledging the company's decent product design. Both companies reported losses for the fourth quarter, with Lucid missing revenue estimates and Rivian reporting a significant per-vehicle loss.
February 22, 2024 | 6:10 am
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Elon Musk's comments on Lucid Group Inc (LCID) highlight the company's financial reliance on Saudi Arabia's PIF and its relatively low market cap. Lucid reported a Q4 revenue miss and a better-than-feared loss.
Musk's critical comments on Lucid's financial reliance and market cap, combined with the Q4 earnings miss, could negatively impact investor sentiment and LCID's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Elon Musk warned of a potential bankruptcy for Rivian Automotive Inc (RIVN) within six quarters, citing its current trajectory. Despite acknowledging decent product design, Musk highlighted Rivian's significant per-vehicle loss in Q4.
Musk's bankruptcy warning for Rivian, coupled with the reported significant per-vehicle loss in Q4, could lead to negative investor sentiment and a potential decrease in RIVN's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 85
RELEVANCE 90