Can you explain to me the logic of Lucid investors - there is a general dislike of this stock in between the financial analysts - but if the company is totally waist of time why so many good investors and fund already invested??? The Saudi Arabian fund is one example

The deep research logic is organized as follows: 

Okay, let's tackle this question about Lucid Group and why there's a disconnect between financial analysts' skepticism and the significant investments from major funds like the Saudi Arabian Public Investment Fund (PIF). The user is confused because if the company is seen as a "total waste of time" by analysts, why are big investors putting so much money into it?

First, I need to gather all the relevant information from the provided references. Let's start by looking at the key points from each reference.

References 1, 2, 3, and 4 mention that Lucid has consistently missed revenue and earnings estimates, faced production volume cuts, and had leadership changes, particularly the departure of CEO Peter Rawlinson. Analysts are concerned about funding issues, product development delays, and the company's ability to secure additional capital. However, there are positive aspects like record quarterly revenue, consecutive delivery records, and partnerships with Uber for robotaxis, which could be strategic.

References 5, 6, 7, and 8 discuss the Saudi PIF's significant investment in Lucid. The PIF holds a majority stake, around 60%, and has provided substantial funding through convertible preferred stock and term loans. The partnership with Uber for 20,000 EVs and $300 million investment is highlighted as a positive move, but analysts worry about cash flow and dependency on the PIF.

References 9-15 detail the PIF's role as a strategic investor, aiming to diversify Saudi Arabia's economy under Vision 2030. The PIF's investments are not just about financial returns but also geopolitical and economic diversification. They're building an EV ecosystem in Saudi Arabia, including manufacturing plants and supply chains, which aligns with long-term national goals.

Now, the user's question is about the logic behind Lucid's investors despite analyst skepticism. The key here is to explain the differing perspectives between short-term financial analysts and long-term strategic investors like the PIF. Analysts focus on immediate financial metrics, profitability, and market risks, while the PIF is looking at a broader strategic picture, including market positioning, technological leadership, and national economic goals.

I should structure the answer by contrasting these two viewpoints. Start with the analysts' concerns: missed estimates, production issues, leadership changes, funding risks, and competition. Then, explain the strategic rationale of the PIF and other institutional investors: long-term vision, market entry, technological partnership, geopolitical strategy, and economic diversification.

Also, mention the recent developments like the Uber partnership, which analysts see as a positive but are cautious about execution. The PIF's continued support despite setbacks shows their commitment to building a sustainable EV industry in Saudi Arabia, which might not be reflected in short-term financial metrics but has long-term strategic value.

I need to ensure the answer is clear, uses the provided references correctly, and addresses the user's confusion about the discrepancy between analyst skepticism and institutional investment. Highlighting the difference between short-term financial analysis and long-term strategic investment goals should resolve the confusion.

### 🌟 **Conclusion**
Lucid Group (LCID) has become a **polarizing stock** among investors, with **analysts skeptical** about its financial health and execution risks, yet **strategic investors like the Saudi Arabian Public Investment Fund (PIF)** remain committed due to **long-term strategic goals** and **geopolitical alignment**. The disconnect stems from **short-term vs. long-term perspectives**, with PIF viewing Lucid as a **catalyst for Saudi Arabia’s Vision 2030** rather than just a standalone EV company. Here’s the breakdown:

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### 📊 **Why Analysts Are Skeptical**
#### 1. **Financial Struggles**
- **Missed Estimates**: Lucid consistently underperforms revenue and EPS targets (Q2 2025: $259.4M vs. $262.6M estimate, -$0.28 EPS vs. -$0.22 estimate ).
- **High Losses**: Annual net loss projected at $2.8B in 2025, narrowing to $2B by 2027 .
- **Production Delays**: Reduced 2025 production guidance to 18,000–20,000 vehicles .

#### 2. **Funding Risks**
- **Dilution Concerns**: Lucid’s shares outstanding have surged 90% since its SPAC merger .
- **Dependence on PIF**: PIF holds ~60% stake, raising questions about **corporate governance** and **independence** .

#### 3. **Competition**
- **Tesla Dominance**: Lucid’s luxury EVs face intense competition from Tesla’s Model S/X .
- **Midsize Market Threats**: Rivals like Rivian (RIVN) and Ford (F) are targeting the same premium EV segment .

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### 📊 **Why PIF and Other Investors Stay Committed**
#### 1. **Strategic Vision Alignment**
- **Saudi Arabia’s Vision 2030**: PIF views Lucid as a **flagship project** to diversify the economy away from oil .
- **EV Ecosystem**: Lucid’s Saudi manufacturing plant (155,000 EVs/year by 2025) supports Saudi Arabia’s goal of 30% EV adoption by 2030 .

#### 2. **Technological Leadership**
- **Partnerships**: Lucid’s collaboration with Uber (20,000 robotaxis ) and Nuro (autonomous tech ) positions it as a **leader in autonomous mobility**.
- **Battery Supply Chain**: PIF-backed deals with Graphite One for domestic battery materials .

#### 3. **Geopolitical Influence**
- **Market Entry**: PIF sees Lucid as a **gateway to global EV markets**, leveraging its luxury brand and advanced tech .
- **Energy Transition**: Lucid aligns with Saudi Arabia’s push for **sustainable energy** and reducing carbon emissions .

#### 4. **Long-Term Bet**
- **High Growth Potential**: Lucid’s market cap (~$6B) is <1% of Tesla’s ($600B), offering **massive upside** if it captures a niche .
- **Patient Capital**: PIF’s deep pockets (~$925B AUM ) allow it to **weather short-term losses** for long-term gains.

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### 📊 **Key Takeaways**
- **Analysts Focus on Short-Term Risks**: Lucid’s financial struggles, production delays, and funding concerns make it a **high-risk bet** for retail and institutional investors.
- **Strategic Investors See Long-Term Opportunity**: PIF and others view Lucid as a **catalyst for Saudi Arabia’s economic transformation**, with EVs as a **strategic industry** for the future.
- **Why the Discrepancy?** Analysts prioritize **profitability and execution**, while PIF focuses on **market positioning, technological leadership, and geopolitical strategy**.

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### 🚨 **Final Thoughts**
Lucid’s story is **not just about cars**—it’s about **Saudi Arabia’s ambition to become a global EV powerhouse**. While analysts may dismiss it as a “waste of time,” PIF’s **patient, strategic approach** could turn Lucid into a **game-changer** for Saudi Arabia’s economy. For investors, the key is to **align with your time horizon**: short-term traders should avoid, while long-term strategists might see it as a **high-risk, high-reward bet**. 🚗💨