Update
$Lucid Group (LCID.US)$ Barron's· 3 mins ago
Saudi Arabia still believes in electric vehicles.
Monday, EV maker Lucid Group filed documents with the Securities and Exchange Commission showing investment entities tied to Saudi Arabia purchased about 396 million shares of Lucid at $2.59 apiece on Oct. 30 and Oct. 31.
These are new shares, so that's about $1 billion in cash for the EV start-up.
The purchases, however, aren't a surprise, and close the loop on recent capital raising. In mid-October, Lucid announced a public offering of some 262 million shares. Along with those shares, Lucid said Saudi Arabia's Public Investment Fund, a majority shareholder, would buy about 375 million shares in a private placement deal to maintain a roughly 60% stake in the EV maker.
The final amount after broker overallotments ended up closer to 400 million shares. That's a little more money for Lucid.
The cash will be used for general corporate purposes. Lucid ended the second quarter with about $4 billion in cash and investments on its books. Wall Street projects the company will use about $2.3 billion in the coming six quarters, according to FactSet.
The auto maker has enough cash to operate to the end of 2025 and beyond. No company, however, can afford to use most of its available cash before acting to raise more. Since becoming a publicly traded company in July 2021, Lucid has used roughly $8.6 billion to develop its business.
Saudi Arabia still believes in electric vehicles.
Monday, EV maker Lucid Group filed documents with the Securities and Exchange Commission showing investment entities tied to Saudi Arabia purchased about 396 million shares of Lucid at $2.59 apiece on Oct. 30 and Oct. 31.
These are new shares, so that's about $1 billion in cash for the EV start-up.
The purchases, however, aren't a surprise, and close the loop on recent capital raising. In mid-October, Lucid announced a public offering of some 262 million shares. Along with those shares, Lucid said Saudi Arabia's Public Investment Fund, a majority shareholder, would buy about 375 million shares in a private placement deal to maintain a roughly 60% stake in the EV maker.
The final amount after broker overallotments ended up closer to 400 million shares. That's a little more money for Lucid.
The cash will be used for general corporate purposes. Lucid ended the second quarter with about $4 billion in cash and investments on its books. Wall Street projects the company will use about $2.3 billion in the coming six quarters, according to FactSet.
The auto maker has enough cash to operate to the end of 2025 and beyond. No company, however, can afford to use most of its available cash before acting to raise more. Since becoming a publicly traded company in July 2021, Lucid has used roughly $8.6 billion to develop its business.
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