NEWARK, Calif. , Oct. 16, 2024 /PRNewswire/ -- Lucid Group, Inc. (Nasdaq: LCID; 'Lucid') announced today the commencement of a public offering of more than 262 million shares of its common stock. The electric vehicle maker's stock price fell sharply in response to the news, as investors absorbed the implications of the dilution.
Lucid Group (NASDAQ:LCID) shares are spiraling in Thursday's session after the electric vehicle (EV) maker announced a public offering of nearly 262 million shares of its common stock. The move comes as the company seeks to raise capital to fund its ambitious growth plans.
On top of the more than 262 million shares on public offer, Lucid's majority stockholder, the Saudi Arabian Public Investment Fund (PIF), has indicated its intention to sell an additional 28 million shares in a secondary offering. This has added to the downward pressure on the stock price.
Electric vehicle maker Lucid Group said it anticipates to report a bigger-than-expected loss for the third quarter and announced a public offering of common stock to raise funds. The company's stock price has been under pressure in recent months amid concerns about its cash burn rate.
Lucid Group Inc (NASDAQ:LCID) shares plunged before Thursday's opening bell after the electric vehicle maker revealed plans to sell about 262 million shares of its common stock in a public offering. The move is aimed at bolstering the company's balance sheet as it ramps up production of its luxury electric vehicles.
Lucid Group shares are trading lower in Wednesday's after-hours session after the company announced an offering and corresponding investment by Ayar Third Investment Company, a major player in the investment world. The move is seen as a vote of confidence in Lucid's long-term prospects.
The car manufacturer is planning a sub-$50,000 mid-size SUV to compete with the Tesla Model Y. This new vehicle is expected to broaden Lucid's customer base and drive sales growth in the highly competitive electric vehicle market.
$750 million of convertible preferred stock via private placement, and (ii) provide for a $750 million unsecured delayed draw term loan facility. The funding will extend the EV maker's runway to the end of 2025, according to its principal accounting officer. Published Aug. 6, 2024.
