Lucid Group Inc (NASDAQ:LCID), the luxury electric vehicle maker, is looking to raise US$8bn of cash from issuing new shares as it seeks to boost working capital amid supply constraints.
With a market capitalisation of about US$27bn, the company halved its forecast for vehicle production earlier this month, blaming issues with supply chains and logistics.
Revenues at the luxury EV maker were US$97.3mln for the second quarter, well short of analysts' estimates of US$145.49mln, as the firm cut its production guidance for the second time this year.
While it has more than 30,000 orders on its books, Lucid expects to be able to make just 6,000-7,000 cars this year.
EV startups that were expected to disrupt the automotive industry are now scrambling to maintain costs and tend to burn cash to bring vehicles to market, given the parts shortages and rising raw material prices.
Just over a year after listing via a SPAC merger and eight months after raising US$1.75bn from a debt issue, Lucid filed for a 'mixed shelf' offering, which will enable it to sell different types of securities in separate offerings with the size, price, and terms to be determined at the time of sale.
Pre-market indications suggest the company's shares will fall about 1.9% to US$15.85, adding to its loss of 57.5% so far this year.
This month, Lucid, which is led by Englishman Peter Rawlinson, unveiled its latest special edition sedan, the Lucid Air Sapphire, a high-performance EV that can accelerate from zero to 60 in less than two seconds, reportedly making it the most powerful production sedan on the market, beating out previous record holder, the Tesla Model S Plaid.
Last year Lucid also stole Tesla's long-range crown, for the EV with the longest distance between charges.