Hey guys it's sasha. Six months ago i made a video about lucid motors because i was investing heavily into the stock and in this video i will update you on why i am continuing to invest more into lucid motors, where i think they're going and share some big updates that i Think will significantly affect their share price. Over the coming months, i made the bulk of my investment in lucid motors before most people had ever heard of the company and before they even went public, certainly before it was fashionable to talk about them. I said in that video that i was putting ten thousand dollars into the stock, and i explained my reasons why now, as it turned out, i ended up not investing ten thousand dollars.

I wasn't truthful. I actually ended up putting in more like thirty thousand dollars uh in the few weeks after that, and my average buy price on lucid stock was 18 lucid share price as i'm recording. This video is just over 24 and when i first invested, one thing that i pointed out was that i didn't expect the share price to move for some time. I thought it was going to be roughly sitting flat.

I expected the stock to yo-yo up and down for several months, because there wasn't any major news that i was expecting to come out, and that is exactly what happened until now. The share price has been bouncing up and down, and i am 35 up, but depending on where, in that cycle, you're invested, it hasn't been any major sort of move. The news that i've been waiting for, though, has just come out. Yesterday, lucid motors posted a photo on their twitter feed that might not look like much and their only commentary above the photo was that the dream ahead hashtag.

But this is a huge moment for lucid. It is a huge moment for lucy's shareholders, and it is a huge moment for car enthusiasts full stop, because this photo shows six lucid cars, all wrapped up on a delivery truck, and this means that lucid has now finally started to manufacture production models and to deliver Cars - this is massively important now before people point out the obvious. Yes, it is just six cars on one delivery truck. These are pathetically tiny numbers in the grand scheme of things of maybe one something large company.

And yes, we have no idea what the production rate at the moment is, how quickly or how slowly they're making those cars and how fast they can scale it. And yes, tesla made 240 000 cars in the last quarter. Amazing and toyotas of this world make 10 million cars per year. That's all great! Thank you very much for pointing that out.

Lucid, isn't a completely different position right now, they're at the beginning of their journey they're a completely different company at a completely different point. In time and by the way, i also hold a whole load of tesla shares too more than i hold lucid. But here's why this particular milestone for lucid motors is important. There have been many many evs and green car startups, and all of that that have made a huge amount of noise, a lot of claims, a lot of expectations, a lot of rubbish.

We seem to have a new one of these starting every month. Everyone making these bold claims we've had uh josh off the top of my head lordstown motors nikola feska workhorse arrival poster neo x, paying hillion byd rivian. There are dozens of others, probably as well, i'm just trying to list a few, and i know that a lot of people got very excited about all of these. But i've only chosen to invest in one of these stocks, because i saw something different.

Many of these companies have completely failed. Some of them are doing pretty well in making cars, but lucid has just become only the second electric vehicle company to start actual production and delivery of cars in the united states after tesla elon musk says very very frequently that making prototypes is easy, but production manufacturing Is hard and i completely understand what he's trying to say, making a one-off car you know in a sort of manual way is easy. Setting up a factory to make cars in any sort of volume in a sort of automated way takes a huge amount of work. The vast majority of vv companies will never get to production of first deliveries.

The vast majority of them are going to fail before that photo that lucid, just posted, and it's also important to remember that selling cars in the united states, europe and some other countries is very, very different to selling cars only in china. The regulations are very different. The quality of the car has to be very different. The crash testing requirements are very different and there is a reason why, for some time, chinese manufacturers have generally failed to establish outside china completely meeting those much more stringent rules in these other markets is no easy feat, but over the last few weeks, lucid has passed The official crash test and got their market leading 520 mile range confirmed, which is an absolutely phenomenal achievement, and now these cars are actually being sold to actual customers.

Now we do have a starting point, however small it may be, and the beauty of this the good thing about this. We can now begin building models on how the business can grow and scale from here. We have a point from which we can then make inferences, because before we didn't even have that, because there is something now that the company can grow, there is a functioning factory that has a production rate that is above zero. This makes understanding the stock and forecasting a whole lot better and yes, lucid, is miles behind tesla on many many metrics lucid is only just starting very low volume production on one production line in one factory, and that process is probably still incredibly manual and labor intensive And it will probably take many months and years for them to scale as it did.

Tesla and lucid, don't have their own charge. Network lucid, doesn't have fsd blah blah blah whatever, but this is the wrong way of looking at what's happening here. Comparing any company to the runaway winner doesn't really help, because, no matter how good you are, you have to start somewhere and that start will always be somewhere far behind where the leader is so that comparison will never really work or deliver any kind of productive output. Yesterday, lucid have shown that they are serious, far more serious than the vast majority of other players.

They have broken through the barrier that nobody else other than tesla has broken through. Yet their cars have the most efficient power trains on the market. Their tech is more efficient than even tesla's, which is mind-boggling. The 520 mile range comes from 113 kilowatt hour battery.

That is a larger battery than what tesla uses, but the relative efficiency of that battery use is still greater, and that is phenomenal. For a company that is brand new, lucid motors has been designing and manufacturing the battery packs used in formula e driving for a few years. Now, that is where their know-how comes from. That's the electric version of formula one: that's where the company started out and that's what they've been doing for many years before they started making their own cars, and that shows you that they really do know what they are doing in some of these spaces.

Lucid's motors the actual motors that power, the car are smaller and lighter than anything else in the market, which gives them a really big efficiency edge. This is a serious tech powerhouse, not just another copycat company that is just trying to jump on the bandwagon and, on the back of that lucid, have a big, really modern factory in arizona that has the capacity to scale to hundreds of thousands of units per year. Without major development, that is a really really important thing. They also have a massive ton of cash.

The company was already very well founded when the saudi arabian public investment fund made a big investment before they went public, which already gave them a huge edge over the competition that was barely surviving from one funding round to another. But then they went and collected a whole lot more money from both institutional and retail investors in the spac deal that concluded a few months ago, and they have also got the talent on board, starting from the ceo peter rollinson, who was chief engineer in tesla when They were rolling out the model s for the first time, all the way, through a bunch of really smart people to johnny ive, who you might know as the design guy behind apple's iphone. You might remember those iconic apple ads that he himself narrated. I am going to do a separate video where i go into the depths of a full valuation for lisa motors, and i will also in that video explain some of the difficulties in valuing pre-revenue early stage companies, which is why a lot of people don't do a Very good job of it and why a lot of people avoid these companies.

But the important thing to note is that qualitative assessment is a critical component here. You don't have robust numbers to work with, and whatever projections you do make will have a huge error margin and massive variance, and that is also partly why this is a much more speculative type of stocks to invest, because you just don't have the confidence in the Time, scales or the numbers, but lucid, is in a unique spot, where some of the biggest components of that qualitative assessment come up with massive seriously big ticks. It is not often that you see a startup that has a huge real, proper factory setup in existence. That is already operating.

It is very, very rare to see a startup with a massive pile of cash. This almost never happens. This lets lucid focus on execution on delivery on their actual jobs, rather than spending all their time. Making investor powerpoint presentations to raise the next funding round, and that is a really important factor.

It is also incredibly rare for a startup to have such a strong amount of talent on board. It would be very, very hard to assemble a better qualified team, even if you tried, but it is almost unheard of for all three of these major things to happen in the same startup and now, on top of all of these factors, the company has actually started Manufacturing cars, the number will be small and a lot of people are going to point their fingers and laugh and say: yeah yeah yeah. Well, it's just a handful of cars just like they did with tesla back when they started and just like, they still do with tesla now, when they compare them to the fords and the toyotas of this world, and yes, lucy's valuation is wildly different to when tesla Went public even to when tesla was already doing pretty well just two years ago, but we're also 11 years down the line from when tesla went public and in a completely different scenario, with very different risks and a very different company in a very different situation. Electric vehicles were not on the agenda back in 2010, they weren't on the agenda even five years after that, but the situation is incredibly different now and tesla has shown that it can be done and how it can be done, and it is far easier to follow.

In the footsteps of somebody who trod the path for the first time in the first place, but here's the thing being the guy following the person trading, the path is not a disadvantage. It is a massive advantage. It makes following the path and moving forwards far far easier. We are in the very early stages here with lucid and there will be many many other competitors coming, but the global car market has room for a lot more than one company to do extremely well.

There is room for dozens. There is an insane pool if you just take a step back of about one and a half to two billion dinosaur cars that currently run on gas and those dinosaur. Cars need to be replaced with electric, even if all new cars started being electric from tomorrow, which is absolutely nowhere near the case that process of replacing the existing cars is going to take 20 years. Being first to market is great.

It's can help it can make you dominant for many years to come, but google was not the first search engine. They came in many years after the first guys and facebook wasn't the first social media platform. They also came in years after the first guys. I am not saying that lucid is going to be that they're going to be some kind of tesla killer, they're going to become all dominant.

But what i am saying is that we are very very very early on in that curve of the electric car revolution and companies that are moving. The right way now can have incredibly bright futures more than one of those companies can do that. If you found this video useful, please don't forget the smash light button for the youtube algorithm. Thank you so much for watching.

I really really appreciate it and, as always i'll see you guys later, you.