Tesla (TSLA) Rival Lucid's Saudi Funding Is Ominous - Bloomberg:
Monday’s big news in electric vehicles: Lucid Motors Inc. secured some funding, and from Saudi Arabia’s sovereign wealth fund, no less. That may sound like a cheap joke at rival Tesla Inc.’s expense; and, yes, that can happen when your CEO conducts corporate finance over Twitter. But few seemed to be laughing Monday morning, with Tesla’s stock dropping at first.
Superficially, Monday’s announcement of Saudi money going to a rival raises uncomfortable memories of Tesla’s bizarre take-private episode. But that fiasco is almost a month old, and we already suspected the sovereign wealth fund might invest $1 billion in Lucid.
More importantly, Lucid’s funding is a reminder that Tesla has a target on its back. Tesla is still a company that — despite the drama, lack of profits, and relatively puny vehicle production — is valued at almost $50 billion. That sort of thing tends to attract competition; indeed, realizing the electrified future Tesla foresees demands it.
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