Lucid Confirms Stock Sale Will Provide Support Until 2026

Lucid, supported by the Saudi Public Investment Fund, recently announced that its stock sale will provide a "cash corridor" until 2026.

CEO Peter Rawlinson mentioned during a recent event that the stock sale announced last week will provide the luxury electric vehicle manufacturer with a "cash lifeline" to support its future operations.

Rawlinson noted in an interview that the stock sale raised approximately $1.75 billion, aimed at supporting the company’s long-term future while preparing to start building its new Gravity SUV before the end of the year. Last week, Lucid expected the offering to raise about $1.67 billion, but on Monday, the company revealed that the actual amount raised was close to $1.75 billion, adding that its expenditures are "dominated by long-term investments."

Rawlinson also mentioned that the company expanded its factory in Arizona by about 3 million square feet earlier this year and established a new factory in Saudi Arabia. He stated, "We are in a capital-intensive phase as we launch Gravity. We are paying for supplier tools and increasing our parts inventory to support production. We are also building our sales service network internationally." Lucid plans to introduce another mid-size crossover model by late 2026.

On Monday, Lucid's shares fell 3% after a sharp decline last week following the stock sale. Despite some drop in demand, Rawlinson remains optimistic about the future of electric vehicles. He said, "I think there is a temporary imbalance here, and there may be a temporary downturn. This is just a bump in the road." He described plug-in hybrid vehicles as a mistake, stating, "They are the worst of everything." The CEO of Lucid expects to deliver 50% more vehicles in 2024 compared to 2023.