Tesla Won’t Buy Lucid Motors, It Would Probably Have To Be a Non-US Company

Some people may think that Tesla may use the opportunity and buy out Lucid Motors. But, first, I am not sure if Lucid Motors will be bought out, second, I agree with the notion that if Lucid were to be bought out it would probably have to be from a non-US company that does not currently sell in the US.

Yesterday Tesla CEO Elon Musk tweeted that Lucid Motors, an electric vehicle startup that spun out of Tesla, might be about to die and wrote “They are not long for this world,” which is an idiom that means that Lucid Motors will not have long to live. I titled my coverage that someone will probably buy Lucid Motors, meaning another car company, or a major tech company may eventually buy out Lucid Motors as that’s what usually happens with companies that struggle to increase production and sales. However, I also stressed that Lucid may be able to turn things around in 2023 and only the time will show.

Now, if Lucid were to be bought out, who would buy this electric vehicle maker? There is a very interesting company under my yesterday’s coverage, which I want to share with you and ask your thoughts. The comenter argues that it will not be a US company, but rather a non-US company.

A user THX 1138 wrote "Lucid's biggest problems are they are non-UAW and they manufacture in California. California is the most hostile environment in the world to manufacture in and the UAW will simply not tolerate any company they have a contract with, buying Lucid. If Lucid were to be bought out it would probably have to be from a non-US company that does not currently sell in the US. Kinda like how Fiat bought Chrysler when it went bankrupt."

Another user, named Indigenous Earthling, writes that he thinks EV OEMs that are putting product on the streets will survive the current macro environment and looming recession in 2023. Some will likely go bankrupt, but many of these will likely be bought out, or restructured with government assistance in the USA and China, similar to General Motors and Chrysler during the 2008-2009 recession. There will also likely be more consolidation as the EV market matures.”

In any case, in my opinion Lucid Motors will survive, in one form or another, as long as they keep scaling production of compelling electric vehicles and keep lowering manufacturing costs. Many well-heeled electric car buyers are probably looking for an alternative to Tesla.

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.