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RIDE - Lordstown Motors News Story

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Last Trade - 20/04/21

Sector
Consumer Cyclicals
Size
Mid Cap
Market Cap £1.16bn
Enterprise Value £712.1m
Revenue £n/a
Position in Universe 2402nd / 6848

UPDATE 1-Lucid Motors CEO aims to launch Tesla Model 3 rival in 2024 or 2025

Tue 23rd February, 2021 11:09pm
(Add quotes)
    By Hyunjoo Jin and Joshua Franklin
    SAN FRANCISCO, Feb 23 (Reuters) - Lucid Motors Chief
Executive Officer Peter Rawlinson told Reuters on Tuesday that
the luxury electric car maker plans to launch a rival to Tesla
Inc's  TSLA.O  Model 3 in 2024 or 2025.
    The company led by the former Tesla engineer is following
the same strategy as Tesla, starting with a luxury car to create
a halo around the brand and then expand into the mass market.
    This week it announced plans to go public by merging with a
blank check company, a move that indicated a market
capitalization of $56 billion -- before regular production of
Lucid Motors' first model has begun.
    Scaling up production of a mass automobile is a major
financial challenge, Rawlinson said.  
    "I can’t wait to do that," he told Reuters, referring to the
rival to Tesla's Model 3, it's least expensive sedan. But first
Rawlinson said he would for now focus on the luxury, bigger car,
which paradoxically takes fewer resources.
    "To make a smaller car requires more capital, because you
need a bigger factory and more automation," he said. 
    Lucid Motors' first electric car, the luxury Air, won't go
in production now until late 2021, later than the spring 2021
launch initially planned.
    Rawlinson said that the carmaker expects production of a
less expensive, sub-$70,000 version of the luxury sedan in 2022,
followed by a sport utility vehicle code-named Project Gravity
in 2023. He said he is interested in developing pickup trucks
and commercial vehicles, but they are several years away and
might be built with partners.      
    "The world needs $25,000 cars urgently. Lucid can’t do it
for another eight years realistically," he said, adding that
even Tesla has not launched such a model yet. 
    He also said six well-known automakers have reached out to
him over the last month and expressed interest in Lucid Motors'
technology. Cooperating with another company could lead to
making a $25,000 car in the next three to four years, he added.
    He also said it is too early for the company to make its own
battery cells for now, adding that it has contracts with
suppliers LG Chem  051910.KS  and Samsung SDI  006400.KS .  

 (Reporting by Hyunjoo Jin and Peter Henderson in San Francisco
and Joshua Franklin in Miami; editing by Jonathan Oatis and
Aurora Ellis)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))
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