Lucid Group Files Massive Shelf Offering, Stock Slips Lower By Investing.com

Shares of Lucid Group (LCID) are slipping decrease in Monday’s after-hours session, after the corporate filed an enormous S-3 combined shelf registration assertion.

The struggling luxurious electrical car producer registered to supply as much as $8,000,000,000 of frequent and most well-liked inventory, depositary shares, debt securities, warrants, buy contracts and items.

Moreover, LCID’s stockholders might get rid of as much as 1,233,800,445 shares and 44,350,000 warrants to buy frequent inventory.

A combined shelf is NOT an providing – it serves to pre-register securities and simplify an precise providing course of ought to the corporate elect to do one. As such, there’s no telling how quickly or how large Lucid’s subsequent capital elevate could also be.

In its most up-to-date quarter – Q2, reported on August third, 2022 – the corporate burned by way of $800M of money, however had $4.6B on its stability sheet offering for almost 6 quarters of leeway on the present run fee.

Nonetheless, the dilution danger brings an additional dent to the already waning traders’ confidence – LCID inventory is slipping ~3% decrease publish submitting.

The information is the newest within the sequence of the corporate’s misfortunes – as soon as dubbed by some because the “Tesla Killer”, Lucid noticed shares plunge 61% in 2022, pushed by halved full-year manufacturing steering (6,000-7,000 automobiles vs prior indication of 12,000-14,000), big miss on earnings, and fixed provide chain hurdles.

By comparability, shares of Tesla has “solely” misplaced 28% YTD.

By Vlad Schepkov