Lucid anticipates announcing an operational loss between USD 765 million and USD 790 million for the quarter ending September 30, which exceeds the analyst projections of USD 751.7 million as compiled by LSEG.
Lucid Motors, an electric vehicle manufacturer grappling with financial difficulties, announced on Thursday its plans for a substantial public stock offering. The company is set to offer over 262 million shares, aiming to raise approximately USD 1.67 billion in proceeds. This announcement comes alongside a sobering update from Lucid, which revealed a projected loss significantly higher than anticipated for the third quarter, ranging between USD 765 million to USD 790 million. This figure surpasses the loss forecasted by analysts, previously estimated at USD 751.7 million based on data from LSEG.
The revelation of these financial challenges and the upcoming large-scale stock sale triggered a sharp decline in Lucid’s stock value. Shares plummeted by more than 17% in premarket trading following the news.
In addition to the public offering, Lucid has also entered into a significant agreement with Ayar Third Investment, an affiliate of Saudi Arabia’s Public Investment Fund (PIF) and Lucid’s largest shareholder. This deal involves a private placement in which nearly 375 million shares will be sold to Ayar. This move is expected to enable Ayar to maintain its approximate 59% ownership stake in Lucid.
The PIF affiliate had previously bolstered Lucid with an additional USD 1.5 billion in August, funds that were anticipated to sustain the company’s liquidity into the fourth quarter of the next year. As of the end of the second quarter, Lucid reported having around USD 1.35 billion in cash and cash equivalents.
Lucid outlined that the capital raised from both the public stock offering and the private placement would be allocated towards general corporate expenses, capital expenditures, and working capital, aiming to stabilize its financial standing and continue its operations amidst growing market pressures.
