Business

EV maker Lucid announces $3 billion raise from Saudi public wealth fund and stock offering

Products You May Like

In this article

In an aerial view, a sign is posted on the exterior of Lucid headquarters on March 29, 2023 in Newark, California. Electric vehicle maker Lucid announced plans to lay off 1,300 workers, 18 percent of its workforce, as part of a restructuring plan. 
Justin Sullivan | Getty Images

Lucid Group said on Wednesday that it is raising about $3 billion through a new equity offering, with the majority coming from the Saudi fund that controls the luxury electric-vehicle maker.

Shares of the company fell more than 6% after hours.

Lucid said that about $1.8 billion of the total will come from a private placement of stock with Saudi Arabia’s Public Investment Fund (PIF). The remainder will be raised through a public offering of new shares that commenced Wednesday, the company said.

The PIF owns about 60.5% of Lucid. The new funding round is structured to keep its stake at the same level.

Lucid said it will use the new cash for “general corporate purposes,” including capital expenditures and working capital.

Lucid had about $3.4 billion in cash and about $700 million in available credit lines as of March 31, according to its most recent report.

Products You May Like

Articles You May Like

As retailers enter the holiday shopping season, the winners are pulling away from the pack
Federal student loan borrowers in default may again face wage garnishments, collections
Here’s why Americans traveling to Europe may find bargains in 2025
South Korean stocks rebound from lows in chaotic trading as president says he’s lifting martial law
Foot Locker issues gloomy holiday outlook, blames soft consumer demand

Leave a Reply

Your email address will not be published. Required fields are marked *