Lucid Stock Surges After EV Maker Announces $1 Billion Cash Infusion
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Key Takeaways
Lucid shares surged over 5% Monday after the electric vehicle maker announced a $1 billion injection of cash from its biggest shareholder through a private stock sale.
Lucid said the money from an affiliate of Saudi Arabia’s Public Investment Fund would be used for general corporate purposes.
Despite Monday’s gains, Lucid shares have lost nearly 30% of their value so far in 2024.
Lucid (
LCID
) shares jumped over 5% Monday after the electric vehicle (EV) manufacturer announced an injection of cash from its biggest shareholder through a $1 billion purchase of newly created
convertible preferred stock
.
The maker of the Lucid Air sedan said the sale to Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund (PIF), would be done in a private placement.
The company said that it planned to use the cash for general corporate purposes, which may include
capital expenditures
and working capital, among other things.
CEO and CTO Peter Rawlinson said that PIF’s support is “a key differentiator” in Lucid’s ability to invest for the long term in both its technology and production capabilities. He added that with PIF’s financial backing, the car maker remains “focused upon accelerating our growth via deliveries, executing key business initiatives with relentless focus upon cost, and launching our game-changing Gravity SUV later this year.”
Shares of Lucid finished 5.4% higher at $2.92 Monday following the news. Despite Monday’s gains, Lucid shares have lost nearly 30% of their value so far in 2024 and over 64% over the past 12 months.
