Lucid Motors‘ VP of Communications Nick Twork pushed back against bankruptcy speculation, saying the Saudi-backed EV maker has ample liquidity and continued backing from its majority shareholder.
Speaking to Orange County-based YouTuber EverydayChris, who has about 149,000 subscribers, Twork was asked when Lucid expects to reach profitability.
The content creator referenced concerns among some investors about a potential repeat of the collapse of Fisker, the EV startup founded by Henrik Fisker that filed for bankruptcy protection in June 2024.
“Chris, I got to say I’m actually really happy to have this question because I think it’s time that people got some direct answers,” Twork said in the YouTube interview published Saturday.
The executive pointed to the investor day scheduled for March 12, where management will discuss the company’s financial outlook and strategy, including the business case for Lucid’s midsize vehicles.
“When it comes to bankruptcy, we had 5.5 billion in liquidity,” Twork said. “That is no small amount of money even for a company, you know, as ambitious as Lucid and what we’re doing.”
He added that Saudi Arabia’s Public Investment Fund has “continued to invest in the company” and recently engaged with Cantor Fitzgerald, resulting in a research note that “reaffirmed their commitment to the company.”
“From my perspective, we’re not going anywhere,” Twork said.
As reported by EV on January 20, Cantor Fitzgerald talked with the PIF saying the Wall Street firm became “away more encouraged […] with renewed confidence” in the Fund’s long term commitment.
Lucid’s stock has slumped nearly 99% from its peak five years ago and hit a new record low last week at $8.90 immediately after the earnings release — equivalent to $0.89 pre-reverse split.
With a market capitalization of $3.28 billion, the company faces pressure to narrow losses, increase demand for its two models while starting production of the third one later this year.
Fundraising Plans
The remarks come days after Lucid reported its largest quarterly operating loss on record and confirmed it will need to raise additional capital before achieving profitability.
Interim Chief Executive Officer Marc Winterhoff said last week that “there will be another fundraise” when asked whether Lucid would require further capital before turning profitable.
He said the company would return to capital markets “when it makes sense to do so.”
Chief Financial Officer Taoufiq Boussaid told investors that Lucid has $4.6 billion in liquidity, which he said is sufficient to fund operations into the first half of 2027.
Late last year, Winterhoff similarly said the company was “funded well into 2027.”
Earlier this year, Bloomberg reported that Winterhoff said in Riyadh he saw no reason to expect additional funding from the Public Investment Fund.
Lucid later said those remarks were “taken out of context or misinterpreted,” adding there had been no change in its relationship with the fund.
PIF’s Majority Stake
The Public Investment Fund has invested more than $9 billion in Lucid since 2018 and holds a stake of over 50% in the company.
In November, Lucid disclosed that the fund agreed to increase a delayed-draw term loan facility from $750 million to about $2 billion, boosting total liquidity by nearly $1.3 billion.
The company also raised $1 billion through a convertible bond with investors outside the fund and announced plans to issue $875 million in convertible senior notes due 2031, with an option for underwriters to purchase an additional $100 million.
Last week, Lucid registered about 69 million existing shares for resale, belonging to affiliates of the Public Investment Fund and Uber.
Boussaid said the move fulfills contractual obligations and does not signal imminent sales, noting Uber is subject to a lockup until March 2027.
Shares tied to the fund are not expected to be delivered until April 2030, subject to early settlement provisions.
Shares Near Record Lows
Lucid’s fourth-quarter revenue rose 123% from a year earlier to a record $523 million, exceeding analyst estimates.
Still, the company posted its widest quarterly operating loss to date and burned $3.8 billion in cash last year, bringing cumulative cash burn to about $18 billion — second only to Rivian among pure-play EV startups.
The company said last month that it would cut 12% of its workforce as part of cost-reduction efforts, a move expected to save $500 million over three years.
