We decided that it was a long time since we had pleased you with interesting news from the world of the automotive industry. Today we will discuss Renault’s financials for 2020 and Lucid Motors’ plans to go public. Go!
Renault reported an annual loss of € 8 billion
On February 19, the French automobile corporation presented its financial statements for 2020. Due to the COVID-19 pandemic, Renault SA had annual revenues of € 43.5 billion, down 21.7% from 2019.
The size of the net loss reached € 8.05 billion, and this, according to Refinitiv, is almost 9% more than analysts predicted. Separately, it should be noted that this financial drawdown is a record in the history of Renault. Recall that in 2019, the concern reported a net loss of € 141 million.
The share price of Renault SA (PA: RENA) before the publication of the report was € 39.8, at the time of preparation of the material – € 36.8. This means that the value of securities after the announcement of the results of last year decreased by 7.5%.
What are Renault’s predictions for 2021?
Automotive CEO Luca de Meo says 2021 will be challenging due to the ongoing pandemic. He said that due to the shortage of electronic components, it is possible to reduce production by 100,000 cars.
In addition, 14,600 employees will be laid off and some businesses closed. Thus, the management of Renault SA will try to reduce costs this year by € 2 billion. Shareholders are warned that the plan to reduce costs has already been implemented by 60%.
Lucid Motors goes public
According to Reuters, premium electric vehicle maker Lucid Motors is planning a merger with SPAC-based Churchill Capital IV Corp to go public. After the transaction, the combined enterprise will be valued at $ 24 billion.
This merger will be the largest in the segment of electric car manufacturers. According to CNBC, the estimates of Fisker, Nikola, Lordstown Motors and other auto startups after the deal with special technical SPAC companies did not exceed $ 4 billion. Lucid Motors will be able to exceed this figure six times.
According to Insider, Churchill Capital IV Corp (NYSE: CCIV) has gained 425% since the first rumors of a possible merger. However, after the publication of more specific information, the value of the company’s securities fell by 38.63%, from $ 57.37 to $ 35.21.
What does Lucid Motors do?
- Former Tesla employees formed the firm in 2007.
- Specialization – development and production of premium electric vehicles.
- The first concept car was unveiled in 2017.
- The production of electric cars will be carried out in the USA, in the state of Arizona.
- The first model will be the Lucid Air, with an estimated cost of $ 77,400.
- The first deliveries of cars of this model are planned for the second semester of this year.
- The company representatives say that in 2022 the volume of deliveries will reach 20,000 cars, in 2026 – 251,000.
- Starting next year, Lucid Motors cars will be presented in the EU countries, two years later – in China.
What records has the auto industry pleased with?
Did you think the news that the shares of the new auto giant Stellantis blew up the stock exchanges in Europe and the USA would be the only bright news from the world of the automotive industry? But no!
New records are being set in the automotive industry. Renault has reported the largest annual loss in its history, its size exceeded € 8 billion. We are sure the reason is clear to you – COVID-19.
But that is not all! Lucid Motors may go public. To avoid an IPO, the electric car maker will team up with SPAC Churchill Capital IV Corp. And this will be the largest merger of an automobile startup with a “shell company”, because after the transaction the valuation of the combined organization will reach $ 24 billion.