Lucid Looking To Raise $8 Billion Amid Ongoing Production Setbacks

Sep. 03, 2022 4:59 PM ET by Jarryd Neves Electric Vehicles / 1 Comment

The all-electric car company is hoping to secure the funds over the next three years.

Lucid Motors has announced it has filed a new offering with the Securities and Exchange Commission (SEC), with the hopes of garnering some much-needed working capital. In a statement, the all-electric automaker confirmed it would allow the company to "raise up to an aggregate of $8 billion in primary capital."

Once the registration statement is made effective by the SEC, Lucid is hoping to secure funds over the next three years. The startup hasn't said how it plans to achieve this but laid several options out on the table. The proposed capital raises could include common or preferred stock, debt securities, purchase contracts, and various other methods.

Despite the announcement, Lucid makes it clear that it is not selling any securities from the registration statement. "[The company] believes that a shelf registration ... will provide greater flexibility to raise capital in the future." The California-based brand may be making waves with the svelte Lucid Air, but it has had to contend with several issues in recent months.

Reservation numbers remain strong, at 37,000, but supply chain issues have forced the automaker to trim production outlooks to 6,000-7,000 vehicles for 2022. Originally, the company had hoped to build between 12,000-14,000 vehicles, after cutting its forecasts down from the planned 20,000 units.

Of course, this translates into fewer vehicles delivered and reduced profits. To work around this, Lucid is hoping to expand its Casa Grande facility in the next few years, which should increase production capacity and get cars to customers sooner.

It's not just Lucid that's facing production issues, though. Fellow EV startup Rivian has also had its fair share of production-related delays, with would-be owners growing increasingly frustrated. Both manufacturers can trace their problems back to the semiconductor chip crisis and supply chain issues. Rivian CEO RJ Scaringe has spoken out against favoritism in the industry, alleging that suppliers accommodate larger companies.

Hopefully, the recently revealed Lucid Air Sapphire will encourage investment and stir sales when it arrives. Equipped with three electric motors, the high-performance sedan is taking the fight to Tesla's Model S Plaid, the current reigning champ in its class.

But with a price tag of $249,000 (before potential options), it will remain the reserve of the wealthy. Still, it should prove to be a hit with the Silicon Valley set, which values cutting-edge technology, sustainability, and status. What's more, we've still got the Gravity to look forward to. As the sales figures show us, electric SUVs are hot property at the moment, and it may just be the shot in the arm Lucid needs - if it can get production on track, of course.

Lucid Looking To Raise $8 Billion Amid Ongoing Production Setbacks

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Lucid Looking To Raise $8 Billion Amid Ongoing Production Setbacks

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