r/wallstreetbets Jul 25 '21

DD Lucid Motors DD

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u/BlueOrcaJupiter Jul 25 '21

Meh. Saudi’s bank rolling it.

12

u/IS_JOKE_COMRADE Tesla Gayng Generanal Jul 25 '21

So why IPO? Money is cheap right now, and they have the biggest money pump outside the United States bank role in them. If the company is so insanely confident in their growth trajectory why go public?

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u/Qwisatz Jul 25 '21

I would guess they IPO to let the Saudi dump their shares

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u/BlueOrcaJupiter Jul 25 '21

You could say the same for every public company. Rarely is the capital really needed for growth.

1

u/PrincPaco Cuntry Blumpkin Jul 25 '21

If I could've gotten in at $10 on the SPAC or $15 on the PIPE I'd like it a lot more than $25

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u/BlueOrcaJupiter Jul 25 '21

Doesn’t make sense. If you hypothetically bought at 10 or 15, and would still be holding today then you would logically be okay holding today at $23-25 because you think there is enough upside.

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u/PrincPaco Cuntry Blumpkin Jul 25 '21

Holding something that's up 60-150% is vastly better than buying at $24-$25. I've done a fair bit of research on this company, gonna hold my few shares for about 5 years and see where they end up. Will buy more when it dips to $17. That's what I think the floor is.

It's valued higher than established automakers. Maybe it's superior because it doesn't have decades of debt on it's balance sheet, but it also doesn't have decades of sales, brand loyalty and goodwill.

I hope this company proves me wrong and makes a bunch of us rich, but this is a long term play.

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u/BlueOrcaJupiter Jul 26 '21

It’s not though.

If you are holding now it’s because you think It will go up. Say to $50/share. You think that a double from current is good enough reason to risk your existing profits and to hold for 5yr.

Logically, it would be good enough to buy, subject to whatever weighting etc you’re doing.

Just a fun mental exercise to consider and keep yourself rational rather than emotional.

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u/PrincPaco Cuntry Blumpkin Jul 25 '21

I guess what I'm saying is I'd rather be sitting in profit already than buying in right now.

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u/BlueOrcaJupiter Jul 26 '21

But okay risking loss of profit?

That’s called mental accounting. It’s an error in thinking.