Samsung SDI getting back up

Samsung SDI got a black eye from the Galaxy Note 7 fiasco. They lost a lot of their stock value and they lost a number of deals that were in a state where the buyers could back out. But they are still making and selling batteries and they are out to prove they aren't really the bad guy they've been made out to be.

They just picked up a deal to supply the batteries for a BEV. The motor company is named Lucid.

However, the deal they inked with Lucid Motors doesn't seem like the kind of deal they want for their long-term growth plans. But even though it may not be the deal they want, it's the deal they need. They need to prove their new cells perform better than cells anyone else is making.

Lucid Motors has a prototype car, but no production yet. And the car they make is long on promise and short on substance. It purports to beat the Tesla Model S, the car it is going head-to-head against, in every category that matters - roominess, comfort, speed, range, and safety.

Lucid Motors inks deal with Samsung SDI

And they may certainly hit those marks. But at the price point they have to be at, based on the venture capital they've received so far, this car is going to have a purchase price somewhere north of the Model S.

And that's fine if that's what your market wants, but it also means the market for the Lucid will be smaller. And that's OK, too. But it means Samsung SDI won't be supplying the volume of batteries that they would prefer. Even that will be good enough if the cells perform well.

Volume can come later, but safety has to come first if Samsung SDI wants to climb back to the top of their industry.