Lucid Group Inc (NASDAQ:LCID) shares plunged before Thursday’s opening bell after the electric vehicle maker revealed plans to sell about 262.5 million shares of its common stock in a public offering.
BofA Securities is acting as the sole underwriter for the public offering, which is expected to close on or about October 18, 2024.
Additionally, the company said that it has entered into an agreement with Ayar Third Investment Company for the purchase of about 374.7 million shares, expected to close on October 31, 2024.
With these purchases, Ayar will retain its approximately 58.8% stake in Lucid.
The deal is subject to “certain conditions, at the same price per share initially to be paid by the underwriter for the public offering,” Lucid said in a statement.
The company said it intends to use the proceeds from the offering and the private placement with Ayar for general corporate purposes, which may include capital expenditures and working capital.
Also weighing on Lucid’s share on Thursday were bigger-than-expected operational losses during the third quarter.
In a securities filing made on Wednesday, Lucid said the company recorded an operational loss between $765 million and $790 million during Q3, ahead of analysts’ expectation of a $752 million loss.
The company will report its full Q3 earnings on November 7.
Shares of Lucid were down 18% at $2.70 pre-market. They have shed 35% in the year to date.