Lucid looks to raise up to $8 billion over multiple offerings

A new filing with the Securities and Exchange Commission (SEC) shows the Lucid Group is seeking to raise up to $8 billion in capital over the next few years.

Lucid announced on Monday it had filed a “universal shelf” registration statement with the SEC, a move that would allow the automaker to to raise the capital in one or more offerings over three years. The three year period would become effective once the SEC declares the registration statement effective.

According to a press release from Lucid, the size, price and terms of the sales would determined when they take place, but could include capital raises could include common stock, preferred stock, warrants, debt securities (including convertible debt), purchase contracts, and/or units (which are typically a combination of two or more types of securities).

“If Lucid decides to raise capital in a future offering using the shelf registration statement, Lucid will describe the specific details of that future offering in a prospectus supplement that is filed with the SEC,” the automaker said.

After officially openings its AMP-1 manufacturing facility in Arizona last year, Lucid has been struggling to ramp production, delivering just 679 cars in the second quarter. In its most recent financial results the company slashed its 2022 production target for the second time this year.

At the start of 2022 Lucid was aiming to produce 20,000 cars. That was cut to 12,000 to 14,000 in February, and in August was cut in half again to between 6,000 and 7,000 units. CEO Peter Rawlinson said the new target “reflects the extraordinary supply chain and logistics challenges we encountered.”

At that time Lucid had burned around $800 million in cash through the end of the second quarter, but said they enough to fund operations well into 2023.

Even though the company is struggling, it recently announced two new changes to its lineup. The first was the introduction of the Stealth exterior design theme, followed a few weeks later by an all-new Air variant called the Lucid Air Sapphire, a tri-motor electric sedan meant to challenge the Tesla Model S Plaid.

It is also scheduled to start construction on their second manufacturing facility in Saudi Arabia this year.

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