Here’s why Lucid’s (LCID) stock is crashing today

Lucid Motors (LCID) stock was down as much as 20% during Thursday’s pre-market after the company announced plans to sell over 262 million shares. The new stock offering is causing share prices to slide ahead of Lucid’s first electric SUV, the Gravity, which will launch later this year.

Lucid announced plans to sell 262.4 million shares of common stock through a new public offering on Thursday.

The EV maker also gave its underwriter, BofA Securities, a 30-day window to purchase an additional 39.4 million shares.

Lucid said in a statement that its majority shareholder, PIF affiliate Ayar Third Investment Company, agreed to purchase 373.7 million shares of common stock in a private placement. The transaction is expected to close on October 31, 2024, while the public offering is planned to close “on or around” October 18, 2024.

Following the private placement, Ayar will still own around 58.8% of Lucid’s outstanding common stock.

Lucid said it will use the new funds for “general corporate purposes,” which could include capital expenditures and working capital, among other things.

Lucid’s (LCID) stock falls after new share offering

Lucid’s stock was down nearly 20% in Thursday’s pre-market trading following the new share offering. Share prices are down over 30% in 2024 and almost 44% over the past 12 months.

Meanwhile, the company is preparing to launch its first electric SUV, the Lucid Gravity, later this year.

The new share offering comes shortly after Lucid revealed another $1.5 billion commitment from Saud’s PIF. After ending the second quarter with $4.28 billion in liquidity, Lucid said it had enough to fund it through Q4 2025.

Lucid has now had three consecutive quarters of record deliveries. With another 2,781 vehicles handed over in Q3, Lucid deliveries reached 7,142 through the first nine months of 2024.

In an SEC filing on Wednesday, Lucid announced that Q3 revenue is expected to be between $199 million and $200 million.

As of September 30, 2024, Lucid had about $5.16 billion in liquidity, including around $4 billion in cash and equivalents. Check back soon, as Lucid will report its full Q3 earnings on November 7.