EV Maker Lucid Files For New Offering To Raise $8 Billion In Stages

EV Maker Lucid Files For New Offering To Raise $8 Billion In Stages

(Reuters) -Lucid Group Inc on Monday filed for a new offering of up to $8 billion as the luxury electric-vehicle maker looks to beef up working capital at a time when supply snarls have crimped its production.

The company, which has a market capitalization of about $27 billion, halved its production forecast for electric vehicles earlier this month, blaming supply chain and logistics challenges.

Electric vehicle startups that promised to disrupt the automotive industry are now scrambling to keep a lid on costs and burning cash rapidly to bring vehicles to market, amid parts shortages and rising raw material prices.

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.

The company’s shares fell about 1.9% to $15.85 in extended trading, adding to its 57.5% losses so far this year.

California-based Lucid, which went public via a shell company in 2021, had secured the $4.4 billion it needed until the end of 2022 but would not wait until then to raise more cash, Chief Executive Peter Rawlinson told Reuters last year.

(Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta)