Electric vehicle maker Lucid Group, backed by Saudi Arabia's Public Investment Fund (PIF), said on Wednesday it plans to raise about $3 billion through a stock offering.
The company said it will sell 265.7 million shares in a private placement to PIF for $6.80 per share. The deal values Lucid at $24 billion.
Lucid will also sell an additional 173.5 million shares in a public offering. The company has not yet set a price range for the public offering.
The proceeds from the stock offerings will be used to fund Lucid's growth plans, including the expansion of its production capacity and the development of new models.
Lucid is one of several electric vehicle startups that have gone public in recent years. The company's shares have been volatile since its debut on the Nasdaq stock exchange in July 2021.
Lucid's stock closed at $7.76 on Wednesday, down 9% from the previous day's close.
The PIF is a sovereign wealth fund that is controlled by the Saudi government. The fund has invested billions of dollars in a variety of companies, including Lucid, Tesla, and Uber.
The PIF's investment in Lucid is seen as a sign of confidence in the company's future. However, the stock market's reaction to the news suggests that investors are still cautious about the electric vehicle market.
Despite the stock market's reaction, Lucid is still seen as one of the leading contenders in the electric vehicle market. The company has a strong lineup of vehicles, including the Lucid Air sedan, which has been praised for its performance and range.
Lucid is also planning to launch a new SUV, the Lucid Gravity, in 2024. The company has said that it plans to produce up to 500,000 vehicles per year by 2025.
The electric vehicle market is still in its early stages of development, but it is growing rapidly. Lucid is one of several companies that are hoping to capitalize on this growth. The company's stock offering is a sign that the PIF is confident in Lucid's ability to succeed in this market.
Analysis
The news that Lucid Group is raising $3 billion, mainly from Saudi Arabia's PIF, is a significant development for the electric vehicle maker. The funding will help Lucid to expand its production capacity and develop new models, which will be essential as the company seeks to compete with Tesla and other established automakers in the growing electric vehicle market.
The PIF's investment in Lucid is also a sign of confidence in the company's future. The PIF is a sovereign wealth fund with a vast amount of resources, and its investment in Lucid suggests that it believes the company has the potential to be a major player in the electric vehicle market.
However, the stock market's reaction to the news suggests that investors are still cautious about the electric vehicle market. Lucid's stock price fell by 9% on Wednesday, following the announcement of the funding round. This suggests that investors are still concerned about the risks associated with the electric vehicle market, such as the high cost of batteries and the limited availability of charging infrastructure.
Despite the stock market's reaction, Lucid is still seen as one of the leading contenders in the electric vehicle market. The company has a strong lineup of vehicles, including the Lucid Air sedan, which has been praised for its performance and range. Lucid is also planning to launch a new SUV, the Lucid Gravity, in 2024. The company has said that it plans to produce up to 500,000 vehicles per year by 2025.
The electric vehicle market is still in its early stages of development, but it is growing rapidly. Lucid is one of several companies that are hoping to capitalize on this growth. The company's stock offering is a sign that the PIF is confident in Lucid's ability to succeed in this market.