The Lucid Air prototype electric vehicle, manufactured by Lucid Motors Inc., is displayed at the company's headquarters in Newark, California, U.S., on Monday, Aug. 3, 2020. The final specs and design of the Lucid Air are due to be unveiled at an event in September and executives say customers can now expect delivery of the first batch of Airs in spring 2021.

Manufacturer of high-end electric vehicles Lucid Group said on Wednesday that it is seeking almost $3 billion via a fresh share offering, with a significant amount of the funding coming from the Saudi firm that owns the business.

Shares of Lucid dropped more than 6% in after-hours trading as a result of the announcement.

EV maker Lucid to raise $3 billion, mainly from Saudi's PIF
According to Lucid, around $1.8 billion of the entire sum will come through a private issue of shares with the Public Investment Fund (PIF) of Saudi Arabia. The public sale of additional shares, which began on Wednesday, will provide the remaining money.

Tesla rival Lucid raises $3 billion amid falling sales -The investment round’s design intends to keep the PIF’s ownership in Lucid at the same level as it is now, which is around 60.5% of the company.

The additional funds will be used for “general corporate purposes,” including sustaining working capital requirements and paying capital expenditures, according to Lucid.

Lucid to raise $3bn through stock offering, with majority coming from Saudi Arabia's PIFAccording to Lucid’s most recent report, as of March 31, it had about $3.4 billion in cash on hand and $700 million in credit lines that were open for business.

With this sizeable equity investment, Lucid will be better equipped to protect its assets and pursue its strategic goals in the cutthroat electric car industry. The business has drawn notice for its high-end electric cars and cutting-edge technologies, notably its fast Air sedan.

EV maker Lucid to raise $3 bln, mainly from Saudi's PIF | ReutersThe relationship between Lucid and the Saudi fund demonstrates the company’s key investor’s ongoing support and expresses optimism for the future of the business. The extra money collected will provide Lucid the tools it needs to advance and broaden its range of electric vehicles while strengthening its position in the market.


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