In a bold move, Lucid Motors CEO Peter Rawlinson has publicly criticized Tesla CEO Elon Musk’s political involvement, claiming it has negatively impacted Tesla’s performance and driven customers to Lucid. This revelation came during an interview with Semafor, where Rawlinson also discussed Lucid’s reliance on Saudi Arabian investment and the company’s current struggle with low EV market demand despite exceeding Tesla Model S sales in some markets.
Rawlinson, who worked for Musk at Tesla for three years, revealed that he knows Musk “very well” but believes the Tesla CEO has become “distracted with politics.” He stated, “His mind is not where it was, and you see the result now. We’re the new leader, and many of my team from Tesla have come and joined me.”
He went further, claiming that Lucid’s growth is fueled not only by former Tesla staff but also by customers who are switching to Lucid due to their dissatisfaction with Musk’s political stances. Rawlinson shared an anecdote about an email from a customer who switched from Tesla to Lucid, stating, “We just couldn’t drive around in a Tesla anymore. We bought a Lucid out of disdain for Elon, but now we’ve got it, we can’t believe what we’ve got.”
While Lucid recently scaled back its production targets, Rawlinson insists the company is outperforming luxury EV competitors in certain markets. “In some markets now, Lucid Air is outselling Tesla Model S,” he stated. He attributes the company’s challenges to the overall EV market demand, claiming, “The market is tough. The actual sales numbers of EVs are increasing. It’s just that the rate of increase was not what we anticipated.”
Lucid’s reliance on Saudi Arabian investment is a significant factor in the company’s financial stability. Saudi Arabia’s Public Investment Fund (PIF) has invested approximately $8 billion in Lucid, holding a 60% stake in the company, making it the largest shareholder. Lucid is also constructing a factory in Saudi Arabia with an annual production capacity of 150,000 vehicles. The PIF views Lucid as an important part of its strategy to diversify Saudi Arabia’s economy and invest in future technologies. Rawlinson explained, “They are looking for multipliers that can help their transition. I didn’t go out and try to seek Saudi money specifically. But I needed billions of dollars.”
Despite these challenges, Rawlinson remains optimistic about Lucid’s future, stating, “We are the only company in the world that has a factory in Saudi Arabia, and we’re the only company in the world that has a factory in the United States. We have the best of both worlds.”
Lucid’s stock price has been declining recently, ending Friday’s session at $2.63, down more than 22% over the past five days. While the company faces headwinds, Rawlinson’s bold statements and Lucid’s strategic partnerships with Saudi Arabia suggest the company may be poised for a resurgence in the competitive EV market.