Lucid Motors is now valued higher than the Ford Motor Group, as its market capitalization rose a day after its quarterly financial results. A significant driver of Lucid’s value was the delivery of the first few Air sedans a few weeks earlier.
Lucid’s stock value jumped nearly 24 percent on Tuesday, closing at $55.42 per share, and pushed the company’s valuation to just under $90 billion. Ford’s valuation was around $79 billion.
Four Years Ago, Ford Reportedly Considered Buying Lucid Motors
Ford had earlier mulled a potential takeover of the electric start-up, which has had a tumultuous journey on the road to production. In 2017 Ford was said to have been interested in acquisition during a time when the future of the fledgling electric car maker was on shaky ground.
See: Lucid Has 17,000 Reservations For The Air, Plans To Build 20,000 Vehicles Next Year
Saudi Arabia’s Public Investment Fund (PIF) came to the rescue with an investment of $1.3bb. Today the fund retains ownership of 63 percent of the company.
Ford did invest in an electric start-up: Rivian, which just went public themselves, also coming close to Ford’s valuation. However, the Saudi investment in Lucid has paid off handsomely, with Business Insider reporting that their stake is worth more than the rest of its US stocks combined, amounting to some $46 billion.
Of course, the road ahead for Lucid is far from straightforward. Monday’s earnings report revealed that the company had lost more than $1.5 billion so far for 2021. The company will also need to ramp up production of its Air sedan if it’s to achieve plans of producing 20,000 next year — especially considering that only a handful have been delivered so far, possibly less than 20 units.
The Air was first unveiled way back in December 2016, and at the time, the plan was for the first units to be delivered in 2018. In the future, the company intends to introduce an electric SUV before the end of 2023, while it also has a lucrative battery deal with Formula E.
