LCID: Lucid to Raise $3bn from Saudi Owner and Public Sale of New Shares

The California-based EV maker is struggling to turn profitable after a whopping $1bn loss in 2022.

• EV startup Lucid Motors announced on Wednesday it is raising $3bn to fund its operations, inject fresh working capital, and provide for “general corporate purposes.” The bigger chunk of that money, $1.8bn, will be coughed up by Lucid owner Saudi Arabia’s Public Investment Fund (PIF), who controls 60% of the company.
• The remainder, Lucid hopes, will be collected by the people. A new equity offering for the public market is already in motion and expects to raise $1.2bn by issuing and selling freshly minted shares. Lucid stock LCID fell 6% on Wednesday as investors reacted to the news.
• The lossmaking EV maker, which is revving up to give Tesla a run for its money, posted a staggering $1.3bn loss for 2022. Still, the management reassures it has about $4.1bn in cash and cash equivalents and expects to use it up by the end of the second quarter of next year.