Nearly 262.5 million shares of Lucid were sold to the public, resulting in a tumble in the company's stock price.

• Nearly 262.5 million shares of Lucid Group's common stock were offered to the public, resulting in a decline in the company's shares during after-hours trading.
• Lucid plans to utilize the funds for various corporate objectives, including capital investments and working capital needs.

Nearly 262.5 million shares of the electric vehicle startup's common stock were offered to the public, resulting in a more than 10% drop in shares during after-hours trading.

In addition to the public offering, Ayar Third Investment Co., a majority stockholder and affiliate of Saudi Arabia's Public Investment Fund, will purchase over 374.7 million shares of common stock from Lucid in a private placement.

After the transaction, Lucid's outstanding common stock will continue to be owned by Ayar approximately 58.8%.

The public offering by the underwriter is subject to specific conditions, with the initial price per share to be paid by the underwriter.

BofA Securities has been appointed as the sole underwriter for Lucid Motors' public offering, and the EV manufacturer intends to grant the firm a 30-day option to purchase up to approximately 39.37 million additional shares of Lucid's common stock.

Lucid plans to utilize the net proceeds from both the public offering and private placement by its majority stockholder for general corporate purposes, which may include capital expenditures and working capital, the company stated.

Two months after Lucid announced that the PIF had agreed to supply the company with $1.5 billion in cash, the EV maker is now looking to add new models to its product line.

At the end of the second quarter, Lucid had $1.35 billion in cash and cash equivalents, which was lower than the $1.37 billion it had at the end of 2023.

Despite initial expectations, Lucid's sales and financial performance have not met expectations due to higher costs, slower-than-expected demand for EVs, and marketing and awareness issues.

The stock of Lucid closed Wednesday at $3.28 a share, up less than 1%, despite a 22% decline in its shares this year. Its market cap is $7.6 billion, with 2.32 billion shares outstanding.