Latest news with #Nikola
Globe and Mail
2 days ago
- Automotive
- Globe and Mail
Will Lucid Stock Be the Next Tesla or Fade Away Like Nikola?
While U.S. electric vehicle market leader Tesla (TSLA) has recouped most of its 2025 losses and has rejoined the $1 trillion market cap club, things have been quite bleak for startup EV companies this year. The spate of bankruptcies has continued in 2025, with Nikola (NKLAQ) and Canoo (GOEVQ) joining the ever-growing list of startups going out of business. Of this group, I find only Lucid Group (LCID) and Rivian (RIVN) as two names worth discussing. Not only do they have viable products with good value propositions, but they have also demonstrated their ability to raise cash to fund their cash burn. Lucid Motors Was Labeled as The Next Tesla Lucid Motors was once labeled a 'Tesla-killer' by many on the Street. The company's founder and former CEO, Peter Rawlinson, even predicted the EV industry to be a 'two-horse race' – with Tesla (TSLA), of course, being the other horse running. A mere glance at its SPAC merger presentation would reveal how generously it benchmarked itself against Tesla, both in terms of car quality and valuations. However, the company has largely failed to live up to the hype. Meanwhile, earlier this year, Lucid acquired some assets of bankrupt Nikola for around $17 million in cash and assumed two leases in Arizona as part of that deal. In this article, we'll discuss whether Lucid Motors can be as successful as Tesla, which, despite its shortcomings, is still the gold standard for many EV companies, or if the company will go out of business like Nikola. Lucid Motors Is Posting Massive Losses Lucid Motors has been posting massive losses, and while the company's Q1 2025 gross margin came in better than expected, it was still -97.2%. That's quite precarious and implies that the cost of revenues is almost twice what the company makes by selling a car on average. The gross margin does not even account for the research & development (R&D) and selling, general, and administrative (SG&A) expenses, which together were roughly 2x the company's Q1 2025 revenues. Lucid Motors Might Not Go the Nikola Way The company had total liquidity of $5.76 billion at the end of March, which the company says provides it with a 'runway into the second half of 2026." During the Q1 2025 earnings call, Lucid CFO Taoufiq Boussaid emphasized, 'This does not include potential future Saudi Industrial Development Fund loans or Ministry of Industry of Saudi Arabia grants.' While some more green energy companies might go bankrupt over the next couple of years, Lucid Group might not, given its backing from Saudi Arabia's sovereign wealth fund, which has poured billions into the EV company already. The 'Saudi backstop' has kept Lucid afloat over the years, and given the country's efforts to diversify its economy from oil revenues, I believe it will keep backing the loss-making company. Overall, I doubt that Lucid will go the Nikola way, at least anytime soon. In fact, Saudi Arabia might even consider taking the company private, a possibility that many have been speculating about for quite some time now. What Would It Take for Lucid to Become the Next Tesla? Meanwhile, while the possibility of Lucid going the Nikola way looks bleak, the road to becoming the next Tesla looks quite hard, too. Lucid Motors offers a quality product, and U.S. News & World Report has named its Air sedan the Best Luxury Electric Car for four consecutive years. The company's second model, the Lucid Gravity SUV, has also received rave reviews, with MotorTrend saying the model is 'Is as Good as EV SUVs Get.' While the publication said that the price for the model is 'not a bargain,' it emphasized, 'but when you consider the cutting-edge technology, impressive range, and sports-car-level performance, it's hard to beat.' That said, to even come remotely close to Tesla, Lucid needs to ramp up its deliveries significantly from the current levels. For context, its 2025 production guidance of 20,000 units is a tiny fraction of the almost 1.8 million cars that Tesla delivered last year. So far, Lucid has targeted the top end of the market, which is similar to what Tesla did in its early days. Lucid is next coming up with a midsize platform, which interim CEO Marc Winterhoff said could be an 'even bigger game changer' than the Gravity SUV. Lucid Needs Its 'Model 3 Moment' In my view, for Lucid to come anywhere closer to Tesla, the company needs its 'Model 3 moment,' which is easier said than done. Tesla CEO Elon Musk stressed multiple times how the company went through a 'production hell' while ramping up Model 3 production. Musk has said that the Tesla factory was his 'primary residence' for three years, where he even slept on the floor. However, what worked in Tesla's favor was the near cakewalk it had in the EV market, as not many automakers took electric cars seriously. Cut to 2025, and there is no dearth of EV models with the market now in an oversupply situation. As for losses, even Tesla was profitable in only a handful of quarters before 2020, and that year was its first full profitable year. However, the company has since been profitable on a sustainable basis. Lucid Motors' losses are still uncomfortably high, even as rival Rivian has posted positive gross margins for two consecutive quarters. Thanks to the EV price war and rising competition, startup EV companies face a tough task in churning out a profit. Overall, while Lucid could still avoid Nikola's fate, becoming the next Tesla looks increasingly difficult for the company.
Yahoo
5 days ago
- Business
- Yahoo
Trump's flurry of pardons include some to campaign contributors
The release from prison of reality TV stars Todd and Julie Chrisley Wednesday is the latest in a flurry of pardons that President Donald Trump has handed out in recent weeks -- including some to his political and financial supporters. Beyond the nearly 1,600 "Day 1" pardons and 14 commutations handed out to those charged in the Jan. 6, 2021, attack on the U.S. Capitol, Trump has, at this point in his second presidency, pardoned or commuted more than 60 individuals according to the Department of Justice Office of the Pardon Attorney and White House officials. In previous administrations, presidents have typically issued the majority of their pardons in their final weeks in office. MORE: Todd and Julie Chrisley released from prison after Trump's pardon Joe Biden, for example, issued pardons -- including preemptive ones -- during the final hours of his presidency to several of his close family members and others who he felt were potential targets of the incoming Trump administration, including Dr. Anthony Fauci, retired Gen. Mark Milley and lawmakers who served on the House Jan. 6 Committee. Of Trump's 60 pardons or commutations unrelated to Jan. 6, about one in five of them have gone to those who have some sort of financial or political connection to him. Here is a list of those dozen recipients. The founder of the Nikola electric vehicle company, Milton, who was pardoned by Trump on March 27, donated nearly $2 million toward the president's reelection efforts last year, including $920,000 to the Trump 47 political action committee, according to Federal Election Commission filings. Trump pardoned Milton for his 2022 conviction of federal crimes related to defrauding investors about the potential of his technology. On March 28, Trump commuted the sentence of the venture capitalist and major political donor who was sentenced to 12 years in prison for violating campaign finance and tax laws, and obstructing an investigation into Trump's 2017 inaugural committee. Zuberi has donated to both Democrats and Republicans, but following the 2016 election, he donated at least $800,000 to committees associated with Trump and the Republican Party, according to FEC filings. A Nevada Republican who was pardoned on April 23, Fiore was awaiting sentencing on federal charges that she took money earmarked for a statue to honor a slain police officer and used it for personal expenses, including plastic surgery. A longtime Trump supporter, Fiore, during her run for governor of Nevada, ran an ad touting that she was one of the first elected officials to announce she was endorsing Trump in the lead-up to the 2016 election. In February, Trump pardoned the former Illinois governor who had been sentenced to 14 years in prison before Trump commuted his sentence in 2020. In 2011, Blagojevich was convicted on 17 counts of corruption, including an attempt to sell the U.S. Senate seat that then-President Barack Obama vacated after being elected to the White House in 2008. Blagojevich supported Trump's 2020 and 2024 presidential campaigns, and appeared as a contestant on Trump's TV show "The Celebrity Apprentice" in 2010. Grimm, who served in Congress from 2011-2015, pleaded guilty in December 2014 to aiding and assisting in the preparation of a false tax return. He served seven months in jail, a month of house arrest, and 200 hours of community service. Grimm has publicly supported Trump and has served as an on-air personality for the conservative cable news channel Newsmax. Last September, Grimm was paralyzed after being thrown off a horse during a polo tournament. Archer and Galanis are two former business partners of Joe Biden's son Hunter Biden, and both accused the younger Biden of improperly leveraging his father's political power to broker overseas business relationships, an allegation repeatedly leveled by Trump. Archer, who was granted a full pardon, was sentenced to more than a year in prison for defrauding a Native American tribal entity in 2022. Trump commuted the 189-month sentence of Jason Galanis, who was serving time for his role in multiple fraudulent schemes. Trump on May 28 officially pardoned the couple, who became famous for their show "Chrisley Knows Best" and who were sentenced in November 2022 to a combined 19 years in prison on charges including fraud and tax evasion. Todd Chrisley was sentenced to 12 years in prison and 16 months of probation while Julie Chrisley was ordered to serve seven years in prison and 16 months of probation. Their daughter, Savannah Chrisley appealed to the Trump administration for pardons for her parents and spoke at the 2024 Republican National Convention. The president in April pardoned Walczak, a Florida businessman and nursing home executive who pleaded guilty to tax crimes last year. Prosecutors argued that Walczak withheld more than $10 million dollars from his employees' paychecks and used that money to buy luxury items for himself -- including a $2 million yacht. He was set to pay $4 million in restitution and serve 18 months in prison before Trump pardoned him. According to the New York Times, Walczak's pardon application stated that his mother, Elizabeth Fago, has donated and raised millions of dollars for Trump's presidential campaigns. The Times also reported that she recently attended a major fundraiser at Trump's Mar-a-Lago Club, though it was unclear if she donated to attend the event. Trump pardoned Jenkins on May 26, one day before he was set to report to federal prison. The former Virginia sheriff had been convicted of federal bribery charges and sentenced to 10 years. Jenkins lobbied the administration for a pardon, and after he was pardoned Ed Martin tweeted "No MAGA left behind." A GoFundMe account supporting Jenkins says he was invited to the White House numerous times for briefings under the Trump administration and also appeared regularly on Fox News. A former Republican Tennessee state senator who pleaded guilty to an illegal campaign finance fraud scheme. Kelsey repeatedly accused the Biden administration of weaponizing the Justice Department -- a favorite line of President Trump. "God used Donald Trump to save me from the weaponized Biden DOJ," Kelsey wrote on X, announcing that he had received a pardon. Kelsey told the New York Times in an interview that three Republican members of Tennessee's congressional delegation -- Representatives Mark Green, Chuck Fleischmann and Andy Ogles -- all wrote letters in support of his petition for a pardon that he submitted to the Trump administration in January. He said that his clemency request likely resonated with Mr. Trump, whom he called "victim No. 1" of political persecution. Kelsey also donated roughly $15,000 to the Trump 47 Committee last year, according to filings. Trump's flurry of pardons include some to campaign contributors originally appeared on
5 days ago
- Business
Trump's flurry of pardons include some to campaign contributors
The release from prison of reality TV stars Todd and Julie Chrisley Wednesday is the latest in a flurry of pardons that President Donald Trump has handed out in recent weeks -- including some to his political and financial supporters. Beyond the nearly 1,600 "Day 1" pardons and 14 commutations handed out to those charged in the Jan. 6, 2021, attack on the U.S. Capitol, Trump has, at this point in his second presidency, pardoned or commuted more than 60 individuals according to the Department of Justice Office of the Pardon Attorney and White House officials. In previous administrations, presidents have typically issued the majority of their pardons in their final weeks in office. Joe Biden, for example, issued pardons -- including preemptive ones -- during the final hours of his presidency to several of his close family members and others who he felt were potential targets of the incoming Trump administration, including Dr. Anthony Fauci, retired Gen. Mark Milley and lawmakers who served on the House Jan. 6 Committee. Of Trump's 60 pardons or commutations unrelated to Jan. 6, about one in five of them have gone to those who have some sort of financial or political connection to him. Here is a list of those dozen recipients. Trevor Milton The founder of the Nikola electric vehicle company, Milton, who was pardoned by Trump on March 27, donated nearly $2 million toward the president's reelection efforts last year, including $920,000 to the Trump 47 political action committee, according to Federal Election Commission filings. Trump pardoned Milton for his 2022 conviction of federal crimes related to defrauding investors about the potential of his technology. Imaad Zuberi On March 28, Trump commuted the sentence of the venture capitalist and major political donor who was sentenced to 12 years in prison for violating campaign finance and tax laws, and obstructing an investigation into Trump's 2017 inaugural committee. Zuberi has donated to both Democrats and Republicans, but following the 2016 election, he donated at least $800,000 to committees associated with Trump and the Republican Party, according to FEC filings. Michele Fiore A Nevada Republican who was pardoned on April 23, Fiore was awaiting sentencing on federal charges that she took money earmarked for a statue to honor a slain police officer and used it for personal expenses, including plastic surgery. A longtime Trump supporter, Fiore, during her run for governor of Nevada, ran an ad touting that she was one of the first elected officials to announce she was endorsing Trump in the lead-up to the 2016 election. Rod Blagojevich In February, Trump pardoned the former Illinois governor who had been sentenced to 14 years in prison before Trump commuted his sentence in 2020. In 2011, Blagojevich was convicted on 17 counts of corruption, including an attempt to sell the U.S. Senate seat that then-President Barack Obama vacated after being elected to the White House in 2008. Blagojevich supported Trump's 2020 and 2024 presidential campaigns, and appeared as a contestant on Trump's TV show "The Celebrity Apprentice" in 2010. Michael Grimm Grimm, who served in Congress from 2011-2015, pleaded guilty in December 2014 to aiding and assisting in the preparation of a false tax return. He served seven months in jail, a month of house arrest, and 200 hours of community service. Grimm has publicly supported Trump and has served as an on-air personality for the conservative cable news channel Newsmax. Last September, Grimm was paralyzed after being thrown off a horse during a polo tournament. Devon Archer and Jason Galanis Archer and Galanis are two former business partners of Joe Biden's son Hunter Biden, and both accused the younger Biden of improperly leveraging his father's political power to broker overseas business relationships, an allegation repeatedly leveled by Trump. Archer, who was granted a full pardon, was sentenced to more than a year in prison for defrauding a Native American tribal entity in 2022. Trump commuted the 189-month sentence of Jason Galanis, who was serving time for his role in multiple fraudulent schemes. Todd and Julie Chrisley Trump on May 28 officially pardoned the couple, who became famous for their show "Chrisley Knows Best" and who were sentenced in November 2022 to a combined 19 years in prison on charges including fraud and tax evasion. Todd Chrisley was sentenced to 12 years in prison and 16 months of probation while Julie Chrisley was ordered to serve seven years in prison and 16 months of probation. Their daughter, Savannah Chrisley appealed to the Trump administration for pardons for her parents and spoke at the 2024 Republican National Convention. Paul Walczak The president in April pardoned Walczak, a Florida businessman and nursing home executive who pleaded guilty to tax crimes last year. Prosecutors argued that Walczak withheld more than $10 million dollars from his employees' paychecks and used that money to buy luxury items for himself -- including a $2 million yacht. He was set to pay $4 million in restitution and serve 18 months in prison before Trump pardoned him. According to the New York Times, Walczak's pardon application stated that his mother, Elizabeth Fago, has donated and raised millions of dollars for Trump's presidential campaigns. The Times also reported that she recently attended a major fundraiser at Trump's Mar-a-Lago Club, though it was unclear if she donated to attend the event. Scott Howard Jenkins Trump pardoned Jenkins on May 26, one day before he was set to report to federal prison. The former Virginia sheriff had been convicted of federal bribery charges and sentenced to 10 years. Jenkins lobbied the administration for a pardon, and after he was pardoned Ed Martin tweeted "No MAGA left behind." A GoFundMe account supporting Jenkins says he was invited to the White House numerous times for briefings under the Trump administration and also appeared regularly on Fox News. Brian Kelsey A former Republican Tennessee state senator who pleaded guilty to an illegal campaign finance fraud scheme. Kelsey repeatedly accused the Biden administration of weaponizing the Justice Department -- a favorite line of President Trump. "God used Donald Trump to save me from the weaponized Biden DOJ," Kelsey wrote on X, announcing that he had received a pardon. Kelsey told the New York Times in an interview that three Republican members of Tennessee's congressional delegation -- Representatives Mark Green, Chuck Fleischmann and Andy Ogles -- all wrote letters in support of his petition for a pardon that he submitted to the Trump administration in January. He said that his clemency request likely resonated with Mr. Trump, whom he called "victim No. 1" of political persecution.
Globe and Mail
24-05-2025
- Automotive
- Globe and Mail
Tesla (TSLA) Finance Chief Gets Record $139 Million Pay Package
Electric vehicle maker Tesla (TSLA) has achieved a new milestone with a record $139 million pay package awarded to its chief financial officer (CFO) Vaibhav Taneja. Confident Investing Starts Here: The pay awarded to Taneja is more than most CEOs receive, and the highest amount ever paid to a CFO, according to Equilar, a company that specializes in executive intelligence and tracks compensation among senior managers at publicly traded companies. The pay package awarded to Tesla's CFO Taneja surpasses the $86 million awarded to hydrogen-truck maker Nikola's CFO back in 2020. Nikola filed for bankruptcy earlier this year. Taneja's compensation is largely tied to stock options and equity awards he received in October 2024. The 47-year-old has held other financial roles at Tesla since 2017. Musk's Pay News of Taneja's big pay day comes as Tesla CEO Elon Musk continues to work without a paycheck. Tesla's board has formed a special committee to review Musk's compensation. His pay has been tied up in legal wrangling since a multibillion dollar stock grant awarded to him by Tesla's board of directors was voided by a judge after shareholders filed a lawsuit. The automaker is appealing the court decision. Taneja's stock awards vest, or become his property, in 2028. The CFO's pay was awarded during a period of volatility at Tesla. While the stock has risen following the re-election last autumn of U.S. President Donald Trump, Tesla's electric vehicle deliveries fell during this year's first quarter for the first time in more than a decade. TSLA stock has declined 15% this year. Is TSLA Stock a Buy? The stock of Tesla has a consensus Hold rating among 37 Wall Street analysts. That rating is based on 16 Buy, 10 Hold, and 11 Sell recommendations issued in the last three months. The average TSLA price target of $282.61 implies 17.37% downside from current levels. Disclaimer & Disclosure Report an Issue
Car and Driver
22-05-2025
- Automotive
- Car and Driver
Hydrogen Trucks from Bankrupt Startup Nikola Come up for Auction
Nikola, a startup that built electric and hydrogen fuel-cell semi-trucks, filed for bankruptcy earlier this year, and now its assets are up for grabs. The auction listing from Gordon Brothers includes 103 hydrogen fuel-cell trucks and plenty of spare parts. Lucid, the startup that builds the electric Air sedan, already purchased Nikola's offices and factory in Arizona last month. After several rocky years, electric-truck startup Nikola filed for Chapter 11 bankruptcy in February. Founded in 2014, Nikola's vision for electric and hydrogen fuel-cell trucks became mired in controversy after founder Trevor Milton was found guilty of defrauding investors. (Milton was pardoned by President Trump in March.) Now, the company's assets are going up for auction, giving intrepid tinkerers the chance to scoop up 103 completed hydrogen fuel-cell trucks. The auction, being conducted by Gordon Brothers, includes a vast array of industrial equipment. But the highlight of the listing is 103 Nikola Tre FCEV semi-trucks, which Gordon Brothers lists as "fully operational." Gordon Brothers The Tre, a Class 8 truck, was first shown in 2018 with a hydrogen fuel-cell powertrain. In 2019, the company revealed a version of the Tre with a pure battery-electric setup. Nikola managed to get the Tre into production, delivering the first units in 2022. A few hundred trucks, both EVs and hydrogen fuel-cell vehicles, were built over the next two years, although 209 units had to be recalled in late 2023 after a battery issue caused a fire at Nikola's headquarters in Phoenix. In its financial report for the third quarter of 2024, Nikola said that 78 of those trucks were back on the road. It's unclear how many Nikola trucks remain in private hands. Still, the 103 units listed in the auction represent a sizable portion of overall Nikola production and a unique opportunity to own an unusual piece of automotive history. According to Nikola's website, which is still up at the time of publishing, the Tre FCEV features a 164-kWh battery and a hydrogen fuel-cell system that provides a range of up to 500 miles. The Tre pushes out 536 continuous horsepower with an instantaneous peak of 773 hp, but the truck is limited to 70 mph. Gordon Brothers While Gordon Brothers lists these trucks as operational, we have a feeling that they likely aren't ready for heavy use. We also imagine trucks from such a troubled startup could be rife with issues, and the hydrogen fuel-cell infrastructure in the United States is incredibly limited. The listing, however, provides potential solutions to those problems, including a wide array of equipment such as batteries, completed fuel-cell stack modules, steering and brake parts, tires, and axles. There's also enough to try setting up your own refueling network, with hydrogen storage systems and refueling pumps included. We wouldn't be shocked to see these assets snapped up by another startup automaker, since some of Nikola's other properties have already been acquired by a leading EV company. In April, electric-vehicle startup Lucid bought Nikola's former headquarters in Phoenix and manufacturing facility in Coolidge, Arizona. Lucid also said it would offer jobs to over 300 former Nikola workers. Lucid has an existing factory in Casa Grande, Arizona, where it builds the Air sedan and Gravity SUV. Caleb Miller Associate News Editor Caleb Miller began blogging about cars at 13 years old, and he realized his dream of writing for a car magazine after graduating from Carnegie Mellon University and joining the Car and Driver team. He loves quirky and obscure autos, aiming to one day own something bizarre like a Nissan S-Cargo, and is an avid motorsports fan.
