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$Lucid Group (LCID.US)$ at what production number will Lucid...

$Lucid Group (LCID.US)$ at what production number will Lucid be profitable? let's make an assumption.
1st, Tesla is producing at cost, given the market is competitive.
fact: Tesla has larger factories, hence it's total fixed cost is higher than Lucid. when total fixed cost is higher, marginal cost per unit of Tesla will be lower then Lucid.
Fact: Fixed cost can be eventually be even up as more cars is produced.
Deduction: At current capital, Lucid per unit cost will never match Tesla's. At competitive market, Lucid selling price will never match Tesla's, and will never be profitable.
Unless,
Lucid has a way to produce which matches the marginal cost of Tesla. Or,
Market catastrophic economic event which punishes the high total fixed cost, but favors the low total fixed cost producer.
For Lucid to turn around.
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  • 151798759 : Good try Shorter. You don’t understand the concept of growing companies.

  • 101843152 OP : Indeed. fixed cost is expandable. If capital is not the limit, the current limitation is the brand awareness and technical maturity to scale. Hence, the key indicator should be progressively increasing deliveries, ignoring the cash burn. It's not a failed business plan, but it needs to drain a lot of money to compete with Tesla

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