According to a report by Reuters on October 17, U.S. electric vehicle manufacturer Lucid stated that its Q3 losses are expected to exceed expectations.
Data compiled by the London Stock Exchange Group (LSEG) indicates that Lucid's operating loss for Q3 is projected to be between $765 million and $790 million, while analysts' average loss expectation for Lucid is $751.65 million.
To alleviate funding pressures, Lucid plans to raise approximately 637 million shares through public offerings and private placements, which could generate $1.67 billion in capital.
Additionally, Lucid's major shareholder, the Public Investment Fund (PIF) of Saudi Arabia, announced plans to purchase 374.7 million shares of the company, expected to maintain nearly 59% of its stake in Lucid. In August, PIF had indicated it would inject up to $1.5 billion in cash into Lucid through its subsidiary, Ayar Third Investment, to help increase production of a new SUV.
So far, the Saudi government has invested billions of dollars into Lucid. Amidst the struggles of many electric vehicle startups for survival, PIF's continued investment underscores its significance to Lucid.
Lucid intends to use the proceeds from the stock issuance and private funding from PIF to support the company's capital expenditures and other funding needs.
Following the stock sale and the release of the latest earnings warning, Lucid's stock price dropped 16.5% to $2.74, marking its lowest level since July 2.
Due to high interest rates and the availability of more affordable hybrid vehicles, demand for electric vehicles in the U.S. has been weakening. Manufacturers like Tesla, Rivian, and Lucid have reduced car prices and offered cheaper financing options to attract consumers.
