Lucid Needs More Money, Files Offering To Raise $8 Billion
After hitting a wall with funding due to supply chain and logistical issues, the EV maker wants to raise money in preparation for more setbacks in 2023.
Lucid is trying to raise some serious money right now. The automaker just filed for a new offering of up to $8 billion. The EV maker is attempting to bolster its capital because of supply chain issues, according to Reuters.
That $8 billion represents nearly 30 percent of Lucid's current market cap of about $27 billion. The California-based company recently slashed its production forecast in half. It cited the usual suspects: supply chain and logistical issues.
Lucid filed for a mixed shelf offering, under which it may sell different types of securities in one or more separate offerings with the size, price and terms to be determined at the time of sale.
Reuters reports the company's shares have fallen nearly 2 percent this year. That adds to its 57.5 percent losses that Lucid has accrued so far in 2022.
Reuters says Lucid, which went public via a shell company in 2021, raised enough money ($4.4 billion) to get through the end of 2022. The company's Chief Executive Peter Rawlinson told Reuters last year that the company would not wait until the end of 2022 to raise more money. So, that's brings us to what we are seeing — a follow-through on that promise.
Right now, Lucid only makes one car – the Air. That being said, the company has extensively teased its next model. It's an all-electric SUV called the Project Gravity. However, when the Gravity will get off the ground is really anyone's guess.