Lucid Motors' Woes Run Much Deeper

The electric vehicle industry has been going through turmoil, and barring market leader Tesla, no other player has been able to make money in the U.S. market. The Detroit Big 3 have announced gigantic losses in their electric vehicle businesses. Ford announced a $19.5 billion write-down in its EV business in December 2025. General Motors, which had once declared that it wouldn't sell gasoline cars after 2035, has written down $7.6 billion. Stellantis, meanwhile, leads the pack with a charge of $26.5 billion.

Market Performance

■Rivian announced a $1.5 billion capital raise earlier this week. The stock expectedly fell after the announcement.

■Lucid Group has raised capital even more frequently. It is backed by Saudi Arabia's Public Investment Fund, which first invested $1 billion into the company in 2018.

Investment Interest

■Tesla CEO Elon Musk claimed that the PIF approached him to take the company private and that he was banking on them while asserting "funding secured" for the transaction.

■Lucid Motors has been resorting to frequent capital raises to make up for the perennial cash burn.

The markets are concerned about the future of the electric vehicle industry. However, Lucid Motors' problems may not be solved just by capital raises. The company needs to develop more effective production and sales strategies.