Top Tweets for #Chwech

about 2 years ago

#Lucid's Project #Chwech is set to achieve 6 miles per kWh, positioning it to overtake #Tesla as the most efficient #EV available. Smart explain #Lucid Q2 2024 Earning full transcript: (Investors & Analysts Q&A) **Investor Questions and Management Responses:** **Investor Question 1: Cost-Cutting and Path to Positive Margins** - **Question from Paul C.:** Rivian announced a 35% cost reduction and expects positive gross margins in Q4. What is Lucid's path to achieving positive margins? **Management's Response:** - **Lucid's Focus:** Achieving positive margins through extensive cost-cutting and efficiency improvements across key areas: - **Direct Vehicle Costs & Supplier Partnerships:** Optimizing supplier relationships to reduce production costs. - **Manufacturing Efficiencies:** Enhancing manufacturing processes and leveraging technology for operational improvements. - **Service Operations:** Testing new service machinery to save costs, reduce the real estate footprint, and improve repair times. - **Technology & Product Development:** Utilizing proprietary technology for cost savings and incorporating learnings from Lucid Air into Lucid Gravity. - **Financial Management:** Maintaining liquidity and strengthening the balance sheet to support cost-cutting initiatives. **Investor Question 2: Motor Technology Comparison** - **Question from Paul C.:** Some companies claim to have production-ready axial flux motors with high torque and power density. How does this compare to Lucid's motors, and how are you staying ahead in technology? **Management's Response:** - **Motor Types:** Lucid uses radial flux motors (drum-shaped), as opposed to axial flux motors (pancake-shaped). - **Performance Comparison:** Lucid's radial flux motors offer better efficiency and performance for electric vehicles. - **RPM Capability:** Lucid's motors can reach up to 20,000 RPM, compared to the typical 8,000 RPM for axial flux motors. - **Manufacturing Complexity:** Axial flux motors are complex and costly to manufacture due to segmented laminations and the need for carbon wrapping. - **Power Density:** While axial flux motors may offer 23% more torque in specific scenarios, Lucid focuses on balancing spin speed and torque for optimal efficiency. - **Technology Leadership:** Radial flux motors are critical in achieving high efficiency (e.g., 5 miles per kilowatt-hour), showcasing Lucid's advanced motor technology. **Investor Question 3: Retail ESS Product Development** - **Question from Retail Investors:** Can you update us on the progress of a retail energy storage system (ESS) product? Are prototypes still being tested, and how is their performance? **Management's Response:** - **Engagement in Energy Sector:** Lucid is actively engaged in the energy sector with the innovative Range Exchange feature, enabling Lucid Air to charge other EVs using bidirectional Wunderbox technology. - **Current Priorities:** The focus remains on vehicle lineup enhancements, including Lucid Air, Lucid Gravity launch, and mid-sized vehicle development, rather than ESS development. - **Future Plans for ESS:** While retail ESS isn't a primary focus now, Lucid recognizes the potential in battery tech for future ESS development, aligning with their core competency in battery technology. --- **Analyst Questions and Management Responses:** **Analyst Question 1: Cash Flow Positive with Small/Mid SUV** - **Question:** Will Lucid be able to reach free cash flow positive with the introduction of the small/mid-sized SUV, or is there potential to achieve this before its launch? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **Vision for Growth:** Lucid's long-term business model focuses on successive growth through phased product launches. - **TAM Expansion:** Moving from Lucid Air to Lucid Gravity increases the total addressable market (TAM) sixfold and potentially thirtyfold with the mid-sized platform. This scaling is expected to lead to cash flow positivity. - **Technology Advantage:** Efficiency in powertrain and battery technology allows for smaller battery packs, reducing costs and supporting free cash flow positivity. - **Gagan Dhingra (Lucid's CFO):** - **Competitive Advantage:** Emphasized Lucid's in-house powertrain and battery technology as a competitive edge in a capital-intensive industry. This advantage will manifest as volumes increase. **Analyst Question 2: Price Elasticity of Demand** - **Question:** How does price elasticity affect demand for Lucid vehicles this year? Does it make sense to reduce prices to drive volume, or should the brand be protected for future vehicles? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **Pricing Strategy:** Lucid introduced the Lucid Air Pure, a rear-wheel-drive car priced at $69,900, aligning with their promise from the 2020 product reveal. - **Market Sensitivity:** There is price sensitivity in the market, but the strategy is to offer more accessible versions rather than price cuts, maintaining brand integrity. **Analyst Question 3: Reservations for Lucid Gravity** - **Question:** When will Lucid start taking reservations for the Lucid Gravity SUV? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **Timing:** Lucid has not yet disclosed the timing for opening reservations for the Lucid Gravity SUV. - **Approach:** The company plans to open a pre-order list at the right time, avoiding premature and speculative reservation lists that may not provide real value to customers. **Analyst Question 4: Mid-Priced Vehicle Strategy** - **Question:** How does Lucid plan to adjust its engine technology to lower the price point of the upcoming mid-priced vehicle by 2026, specifically in terms of reducing material and battery costs? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **Cost-Effective Technology:** Lucid is leveraging its advanced systems and expertise to create a cost-effective variant for the mid-sized vehicle. - **Material Efficiency:** The focus is on reducing the cost of materials, such as bearings, copper, and heat treatment in gears, while maintaining high efficiency and compactness. - **Manufacturability:** Rawlinson emphasized that current technology is manufacturable and cost-effective for its performance level. The goal is to adapt this knowledge to produce a more affordable unit that aligns with the mid-sized vehicle's needs. - **Potential Licensing:** The more cost-effective design could also be suitable for licensing to traditional OEMs for family cars. **Analyst Question 5: Capital Raise and Term Loan** - **Question:** Regarding the $1.5 billion capital raise announced today, when do you plan to draw down on the delayed term loan? Should we expect it this year or next year, given your current cash position? **Management's Response:** - **Gagan Dhingra (Lucid’s CFO):** - **Liquidity Status:** Lucid ended the quarter with $4.28 billion in liquidity and announced an additional $1.5 billion, including a $750 million convertible note. - **Term Loan:** There is no immediate intention to draw the $750 million term loan due to sufficient liquidity. The drawdown will occur in due course, not imminently. - **Peter Rawlinson (Lucid’s CEO):** - **Cash vs. Liquidity:** Emphasized the importance of viewing the full $4.28 billion liquidity rather than just cash reserves, considering the investments being made. - **Investment Focus:** Highlighted significant investments in the new factory in Saudi Arabia, expanding the Arizona factory, tooling for Lucid Gravity, and international sales and service network expansion as part of a long-term strategy. **Analyst Question 6: CapEx Outlook Reduction** - **Question:** What are the drivers behind the reduction in CapEx outlook for this year? **Management's Response:** - **Gagan Dhingra (Lucid’s CFO):** - **Reduction Drivers:** The $200 million CapEx guidance reduction is primarily due to cost reduction efforts and a thorough review of expenditures. - **Cost Management:** Focused on negotiating better terms for machinery and equipment, thoroughly examining every dollar spent, and achieving significant savings and reductions. - **Deferrals:** While some CapEx deferrals are involved, savings and reductions have played a more significant role. **Analyst Question 7: Efficiency Improvements** - **Question:** How will #Lucid's efficiency improve over the next 2-3 years in software, electrical, and battery tech? **Management's Response:** - **Efficiency Improvements:** Lucid achieves 5 miles per kWh and 146 MPGe. **Project Chwech** (in Welsh, “Chwech means six”) aims for 6 miles per kWh, focusing on software and hardware advancements despite stringent EPA tests. **Analyst Question 8: ADAS Features** - **Question:** What is the importance of ADAS features to customers, and what rollouts are planned? **Management's Response:** - **ADAS Features:** Lucid is making a significant software push with hands-free lane assist and infotainment updates this year. Improvements to Lucid Air will lead to a showcase with the launch of Gravity. **Analyst Question 9: Capital Raise from PIF** - **Question:** How should the recent capital raise be viewed? Is it a final investment from the PIF or a strengthening of the long-term partnership focused on medium to long-term goals? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **Long-Term Commitment:** The capital raise is a strong endorsement of the long-term partnership with the PIF, aligned with Saudi Arabia's Vision 2030. - **Strategic Partnership:** It's more than a financial arrangement; it's an enduring partnership. PIF is committed to supporting Lucid's goals, including the mid-size vehicle and Lucid Gravity. - **Non-Dilutionary:** The raise is non-dilutionary, extending cash runway into Q4 2025, covering the Gravity launch and production ramp-up. - **Efficiency and Scale:** Lucid's efficiency, achieving 5 miles per kWh and 420 miles on 84 kWh, enables competitive pricing and scale, with Gravity expected to double the efficiency of competitors' battery sizes. **Analyst Question 10: Aston Martin Licensing Agreement** - **Question:** Can you update us on the Aston Martin licensing agreement and when it might ramp up in terms of revenue? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **Delay:** There's a minor delay on Aston Martin's end, but it doesn't affect the long-term relationship. - **Commitment:** Both companies are committed to developing the best electric hypercars. Lucid's pricing range ($69,900 to $249,000) complements Aston Martin's offerings, ensuring no market overlap and strong synergy. **Analyst Question 11: Lucid Air Pure Battery Changes** - **Question:** The 2025 Lucid Air Pure has a smaller battery capacity. Does this mean the cells are different, or was the vehicle weight reduced to achieve 5 miles per kilowatt-hour efficiency? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - The 2025 Lucid Air Pure uses a 16-module pack running at 672 volts, totaling 84 kWh, with an open circuit voltage of 42 volts per module. This setup enables it to achieve 5 miles per kilowatt-hour and 146 MPGe while offering a 420-mile range. Lower range can increase efficiency further by reducing battery weight. **Analyst Question 12: Bill of Material Costs** - **Question:** What is the end goal of Lucid's advantage in the bill of material costs for an EV? Is it to achieve superior profitability as volumes scale? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - Lucid's goal is to reduce battery usage by 15-16 kWh compared to competitors, saving thousands of dollars per vehicle. This advantage supports mid-sized products and potential licensing for more affordable EVs, enhancing profitability and environmental impact. - **Gagan Dhingra (Lucid's CFO):** - Lucid's in-house powertrain and battery technology provide a significant cost advantage and better margin profiles than traditional OEMs. Scaling production will enhance this competitive edge. **Analyst Question 13: Long-Term Strategy** - **Question:** Can you expand on the long-term strategic impact of maintaining a technology lead and how it affects future models and partnerships? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - The focus is on advancing EV technology to lower costs and make electric cars accessible to more people. Lucid's technology can also benefit other manufacturers by reducing battery size and costs, especially in electric pickups. The upcoming Technology and Manufacturing Day on September 10th will showcase Lucid's world-leading EV powertrain technology. **Analyst Question 14: Deliveries and Demand** - **Question:** With a production guide of 9,000 units, why are third-quarter deliveries expected to be lower despite strong North American demand? What's the full-year delivery expectation? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **Production Goal:** Lucid aims to produce approximately 9,000 cars this year and is on track to achieve this. - **Inventory Management:** Deliveries will be managed prudently to ensure efficient inventory, avoiding excess growth while supplying directly from inventory. Seasonal trends and a summer slowdown may impact Q3 deliveries, but an upturn is expected in Q4. No guidance on deliveries has been provided. - **Gagan Dhingra (Lucid's CFO):** - **Inventory Benefits:** Managing inventory helps with cash flow, reduces obsolescence risk, and lowers storage costs, ensuring a strong market position. **Analyst Question 15: Average Selling Price (ASP) and Cash Burn Rate** - **Question:** Is there a difference in ASP between general deliveries and those to the Saudi government? With $4.3 billion in liquidity and $1.5 billion raised, the implied quarterly cash burn rate is $900 million to $1 billion. Can you explain what drives this rate, and how does it relate to gross margin profitability? **Management's Response:** - **Peter Rawlinson (Lucid's CEO):** - **CapEx and R&D Investments:** Significant CapEx spending is planned, with $243 million in Q2 and $1.3 billion guided for the year. Investments focus on the Saudi Arabia factory, the Arizona facility, Lucid Gravity production, mid-sized vehicle design, and global service networks. - **Strategic Focus:** Spending supports long-term strategic growth, building state-of-the-art facilities and technology leadership. - **Gagan Dhingra (Lucid's CFO):** - **Financial Planning:** The liquidity and capital raise support ongoing CapEx and R&D, aligning with profitability goals and strategic investments for future growth. $Lcid #SmartEarningTranscript

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Dosbarth Derbyn @YsgolGymraegD

over 3 years ago

#chwiban #chwyrligwgan #chwiorydd #chwyddwydr #chwilen #chwech #chwyrnu #chwaer #chwyddo 👏🏼

442

Eddie Ladd @GwenithOwen

about 4 years ago

Crêts yn barod i fynd i Dregaron. Diolch i @lowrij am gynnig! Brawd yn mynd â nhw nawr, cymorth hawdd i'w gael mewn cyfyngder. #chwech #whech #steddfod2022 #tregaron

GwenithOwen's tweet photo. Crêts yn barod i fynd i Dregaron. Diolch i @lowrij am gynnig! Brawd yn mynd â nhw nawr, cymorth hawdd i'w gael mewn cyfyngder. #chwech #whech #steddfod2022 #tregaron https://t.co/n69doeUxKh

Dosbarth Derbyn @YsgolGymraegD

over 4 years ago

#chwyddwydr #chwiban #chwarel #chwech #chwaer #chwilen 👏🏼

David Parry @caruconwy

over 5 years ago

#Carol #Conwy #Six #Chwech #Sublime singing makes the soul soar https://t.co/CAKNiITktN

Kevin jones @JonesKevinth

almost 7 years ago

Hyfryd. Hoffi’r cyfeiriad at y #chwech maesdysgu.

Ysgol Aberaeron @Ysgol_Aberaeron

almost 7 years ago

Waw! Edrychwch! Mae Bl. 1 a 2 wedi cydweithio gyda @rhiannon_art i greu murlun anhygoel. #chwechmaesdysgu Yrs. 1 & 2 have worked with @rhiannon_art on an art project. Diolch Rhiannon.

Ysgol_Aberaeron's tweet photo. Waw! Edrychwch! Mae Bl. 1 a 2 wedi cydweithio gyda @rhiannon_art i greu murlun anhygoel. #chwechmaesdysgu Yrs. 1 & 2 have worked with @rhiannon_art on an art project. Diolch Rhiannon. https://t.co/FTqyhkVVuW

Dosbarth Derbyn @YsgolGymraegD

over 7 years ago

Ymdrech arbennig unwaith eto! 👏🏼#chwech #chwarter #chwaer #chwyddwydr #chwyrligwgan #chwiban #chwerthin Pasg Hapus i chi gyd ~ Happy Easter to you all 🐣