On Monday the 29th of August 2022 Lucid Group Inc. made its intentions clear that it will raise an additional $8 billion. The premium electric startup automaker applied for a new offering in order to tackle the usual challenges of being a new business and also issues with supply chain and inflation for global automakers.
Lucid is in the beginning stages of becoming an automaker with only one model on the market up to date and a pricey one, Lucid Air. Lucid Air. As per Automotive News, the brand has a market value of $27 billion. But, it has recently announced that it would reduce its production forecasts by half because of logistics and supply chain issues.
Like many automakers in the present, and especially EV companies like Rivian, Lucid is finding that the cost of building its vehicles are rising. However, it isn’t able to build sufficient vehicles to fulfill orders, and the rates it offered buyers could have been higher.
It will come as no surprise that Lucid plans to raise additional funds. It won’t be shocking that the company will need to raise money several times in the future. When you have a short glance at the history of Tesla it’s evident that the road ahead is likely to be rough for Lucid for years to come. It must keep investing in the near future and raise funds accordingly.
Automotive News reported that Lucid’s application was for an “mixed shelf offering.” In simple terms, this means that it is able to offer a range of securities in various distinct offerings.
Lucid is located in California however, it is creating an assembly line in Arizona. News came out this week that Lucid is an EV manufacturer plans to increase the size of the Arizona manufacturing facility. The country has just made an investment of $114 million to lease an additional 1,400 acres in addition to the 600 acres already in.
Chief Executive Officer Peter Rawlinson hasn’t shied away from the reality that Lucid will require funds. Indeed, the company has reached the $4.4 billion needed for 2022. However, the CEO declared that the company wouldn’t wait until 2022’s end to raise any more funds.
Source: Automotive News