Lucid Motors (LCID) stock is sliding after the EV-maker announced one other capital raise via a share sale late Wednesday night, because the California-based EV maker seeks further runway ahead of the discharge of its upcoming EV SUV.
Lucid said it would offer as much as 262,446,931 shares, with the proceeds likely raising around $1.67 billion, for general corporate purposes in addition to for capital expenditures and dealing capital.
The corporate also said its majority shareholder, Public Investment Fund affiliate Ayar Third Investment Company, would purchase a further 374,717,927 shares via a non-public placement, which might allow Ayar to keep up its 58.8% stake without dilution.
Consequently of those moves, Lucid stock slid 16% in midday trade.
The stock offerings come only two months after Ayar gave Lucid a money infusion of around $1.5 billion.
As well as, Lucid filed preliminary third quarter financial results, with a loss from operations expected within the range of $765 million to $790 million for the quarter, just like the $790 million lost in Q2. Third quarter revenue is anticipated in a spread of $199 million to $200 million, ahead of estimates of $196.4 million, as compiled by Bloomberg,
Lucid also said it had roughly $1.9 billion in money and equivalents, with total liquidity of $4 billion prior to the capital raise.
Last week, Lucid said it delivered 2,781 vehicles throughout the quarter, beating Bloomberg estimates, but its 1,805 cars produced missed what the Street was expecting.
Lucid hopes its upcoming Gravity SUV, expected to start production later this yr, will jumpstart sales by a big margin.
“We imagine that the overall addressable marketplace for Gravity is six times that of Lucid Air,” Lucid CEO Peter Rawlinson said in an interview with Yahoo Finance in August.
Rawlinson said the corporate will eventually have capability at its Arizona plant to construct 90,000 Gravity SUVs per yr.
The large query will likely be whether Lucid can construct the Gravity SUV efficiently and are available in below cost. The Gravity is anticipated to begin around $80,000 within the US, right on the eligibility threshold for the federal EV tax credit.
Pras Subramanian is a reporter for Yahoo Finance. You’ll be able to follow him on Twitter and on Instagram.
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