Managing partner of the future fund Gary Black He doesn’t think advertising will help the luxury electric vehicle maker Lucid Group LCID Overcome your poor pricing strategy.
What happened: “Advertising can’t overcome a bad product/pricing strategy,” Black said in a post on X. He was responding to an X user who noted that Lucid stock has been falling despite the ads.
“We have been short $LCID to the bottom,” Black added.
The cited post showed a sponsored tweet about Lucid winning “World Luxury Car of the Year 2023” juxtaposed with its struggling stock, with one user sarcastically saying: “As you can see, the hype is working very well for Lucid!”
Black and advertising: Black is a strong advocate for advertising, particularly for the electric vehicle giant. Tesla Inc.. He has often reiterated his view that Tesla should spend more on advertising its vehicles to increase deliveries rather than reduce prices, thereby hurting its margins.
In a post in late October, the fund manager recommended that Tesla should use a combination of pricing and advertising to promote its mission of accelerating the global transition to sustainable energy.
But Tesla, unlike Lucid, is more like an Apple iPhone, Black said.
lucid Prices for placing strategy: Lucid’s Air sedan starts at $77,400 for its base Pure trim. The top-of-the-line Sapphire edition is priced at $249,000. The Gravity SUV is also priced similarly.
Meanwhile, Tesla’s cheapest vehicle is the rear-drive Model 3, starting at $38,990. The EV maker’s most expensive vehicle is the top-end version of the Cybertruck, called the Cyberbeast, priced at $99,990.
Price action: Lucid shares closed up 3.9% at $3.51 on Thursday. However, the stock is down 15.4% year to date and almost 66% over the past year.
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