Investors in Lucid Motors (LCID) are closely watching as the company recently announced another capital raise through a share sale. The California-based EV maker is gearing up for the release of its highly anticipated EV SUV, and the market reaction has been swift.
According to the announcement, Lucid is planning to offer up to 262,446,931 shares, with the proceeds expected to raise approximately $1.67 billion. This additional capital will be used for general corporate purposes, capital expenditures, and working capital. In addition, the company’s majority shareholder, Public Investment Fund affiliate Ayar Third Investment Company, will purchase an additional 374,717,927 shares through a private placement to maintain its 58.8% stake without dilution.
As a result of these moves, Lucid stock saw a 16% decline in midday trade. This comes just two months after Ayar injected around $1.5 billion into the company. Lucid also released preliminary third-quarter financial results, with a loss from operations expected to be in the range of $765 million to $790 million, similar to the previous quarter. Despite the losses, third-quarter revenue is projected to be between $199 million to $200 million, exceeding estimates.
Furthermore, Lucid reported having approximately $1.9 billion in cash and equivalents, with total liquidity of $4 billion before the capital raise. In the third quarter, the company delivered 2,781 vehicles, surpassing estimates, but fell short on production numbers, producing only 1,805 cars compared to market expectations.
Looking ahead, Lucid’s focus is on the upcoming release of the Gravity SUV, set to begin production later this year. CEO Peter Rawlinson is optimistic about the potential market for the Gravity SUV, projecting it to be six times larger than that of the Lucid Air. The company aims to have the capacity to produce 90,000 Gravity SUVs annually at its Arizona plant.
The success of the Gravity SUV will be crucial for Lucid’s future growth, as it is expected to compete in the premium EV segment with a starting price of around $80,000 in the US. This places it at the qualifying threshold for the federal EV tax credit, potentially making it a more attractive option for consumers.
At Extreme Investor Network, we are closely monitoring the developments at Lucid Motors and analyzing the impact on the stock market. Stay tuned for more insights and updates on the latest financial and business news.ده