Tesla rival Lucid Group Inc (NASDAQ:LCID) has announced plans to raise US$1.75bn through a convertible debt sale to institutional investors.
The proceeds from the debt sale will be used to fund the company’s research and development programme, improve its manufacturing capabilities, and expand its distribution network, as well as potentially enhancing its sustainability-focused investments, Lucid said in a statement.
The debt securities will be convertible into equity and further notes, of up to US$262mln, may be issued after two weeks.
A coupon for the debt securities has yet to be announced.
Lucid shares fell as investors responded to the dilution risk.