Lucid Stock Declines After Announcing Stock Sale Plan: Lucid, the electric vehicle manufacturer,
announced its intention to sell 262.4 million shares of its common stock,
leading to a decline in its stock price.
This announcement comes as part of a plan to raise additional capital shortly after a significant investment in the company.

Contents

Details of the Stock Sale

Impact of the Announcement on Stocks

Deliveries Exceed Expectations

Expected Revenues and Earnings

Details of the Stock Sale

Lucid’s stock declined following its announcement to sell 262.4 million shares of its common stock,
valued at approximately $860 million based on Wednesday’s closing price.
The company also granted Bank of America Securities the option to purchase

up to an additional 39.4 million shares within 30 days.

This sale comes two months after Lucid received a $1.5 billion cash
injection from Saudi Arabia’s Public Investment Fund (PIF) subsidiary.

A separate deal was also announced with Ayar Third Investment Company,
a subsidiary of PIF and Lucid’s largest shareholder.
Ayar will purchase 374.7 million shares of Lucid in a private placement deal timed
with the public offering to maintain its 58.8% ownership stake in the company.

Impact of the Announcement on Stocks

Lucid’s shares fell by around 15% in after-hours trading,
with the stock down about 22% for the year as of Wednesday’s close.
The company plans to use the proceeds from the sale for general corporate purposes,
including capital expenditures and working capital, but did not provide further details.

Lucid also plans to begin production of its new SUV, the Gravity, later this year.

Deliveries Exceed Expectations

This announcement comes about a week after Lucid reported delivering 2,781 vehicles during the third quarter,
surpassing analysts’ expectations.
The company produced 1,805 electric cars, which fell short of forecasts.
Currently, Lucid is focused on delivering only one vehicle model, the Lucid Air.

Expected Revenues and Earnings

Lucid announced preliminary third-quarter revenues between $199 million and $200 million,
exceeding the average analyst estimate of $196.4 million compiled by Bloomberg.
The company is scheduled to report its entire earnings on November 7.

Lucid Stock Declines After Announcing Stock Sale Plan

Lucid Stock Declines After Announcing Stock Sale Plan

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