Tesla Inc. TSLA CEO Elon Musk couldn’t resist poking fun at rival EV maker Lucid Group LCID, following the latter’s report of a staggering net loss of $680.9 million for the first quarter after generating just $172.7 million in revenue.
What Happened: In response to a Twitter user’s suggestion that Lucid might mitigate its losses by giving away free Tesla Model 3s and halting its own car production, Musk simply replied with a laughing emoji.
Lucid incurred a net loss of over $346,000 for every vehicle delivered in the first quarter.
Musk also reacted similarly to comments made by Lucid CEO Peter Rawlinson during the company’s first-quarter earnings call, particularly regarding their in-house technology and partnership with Saudi Arabia’s Public Investment Fund.
“Now I believe there are two key factors that really set Lucid apart. Our superior in-house technology and our partnership with the PIF, who have been steadfast investors and partners,” Rawlinson said.
Why It Matters: This ongoing banter highlights Musk’s long-standing criticism of Lucid and its CEO. Last year, Musk warned of potential bankruptcy for Lucid due to excessive spending and predicted they would “end up in the cemetery” unless they slashed costs.
Earlier this year, he remarked that “Their Saudi sugar daddy is the only thing keeping them alive,” referring to the significant investment from PIF, totaling about $6.4 billion since 2018.
Musk has also questioned Rawlinson’s compensation, considering it excessive given the company’s performance. He criticized a $6 million cash bonus approved for the CEO in February, claiming it was disproportionate to Rawlinson’s actual contributions.
Moreover, Musk has disputed Rawlinson’s claimed role as the chief engineer for Tesla’s Model S, alleging that Rawlinson joined the company after the Model S prototype phase and left before production began.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Photo courtesy: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
