Lucid Provides a Sobering Look Under the SPAC Hood
"But the thing that stood out in Lucid’s financial disclosures was the level of projected cash burn:
It expects to consume almost $10 billion of cash in four years. That far exceeds the $4.4 billion Lucid will receive from the SPAC and a concurrent PIPE financing — a type of equity funding open only to accredited investors.
High cash burn is often a problem for new entrants to the automotive industry — just ask Tesla Inc. or NIO Inc. But some of the latest crop, such as Fisker Inc., have sought to cut their need for capital by outsourcing manufacturing and engineering.
Lucid is going the traditional route. It’s built a small plant in Arizona, and faces a mounting bill to add factory capacity, develop technology and build a network of sales and service outlets. "