Lucid stock tanking as EV-maker announces share sale ahead of SUV launch

Published On Oct 17, 2024, 12:14 PM

Lucid Motors (LCID) shares have dropped significantly after the company announced a new public share offering aimed at raising approximately $1.67 billion. This move comes as Lucid prepares to launch its highly anticipated Gravity SUV. The offering involves selling up to 262 million shares, with additional shares being purchased by a major shareholder to maintain their stake. Despite this, Lucid's recent quarterly report indicates continued losses, but higher than expected revenue. Investors are concerned about the impact of these share sales on stock performance.

Read full article

Stock Forecasts

LCIDView LCID chart on TradingView

Negative

The announcement of a share sale often leads to short-term retraction in stock prices due to dilution concerns. Given Lucid's operational losses and the context of raising funds ahead of a new product launch, the current market reaction appears to be cautious. While the launch of the Gravity SUV holds promise for future revenue growth, immediate sentiment is likely to remain negative due to dilution and operational challenges.

Related News

EV maker Lucid selling more stock to raise cash ahead of SUV launch

Oct 17, 2024, 12:14 PM

Lucid Motors announced another capital raise via a share sale late Wednesday night as the California-based EV maker seeks further runway ahead of the release of its upcoming EV SUV.

LCID