Lucid Motors' Financial Update
By David Shepardson
DETROIT (Reuters) – Lucid CEO Peter Rawlinson stated on Monday that a recently announced stock sale will provide the electric luxury sedan manufacturer with a "cash runway well into 2026."
In an interview during a Reuters Next event, Rawlinson noted that the stock sale raised approximately $1.75 billion, which he described as crucial for the company's long-term future as it prepares to start building its Gravity SUV before the year ends.
Last week, Lucid (NASDAQ:LCID) projected the offering would yield $1.67 billion; however, the actual amount reached nearly $1.75 billion. Rawlinson stated that the company’s expenses are primarily related to long-term investments.
He highlighted that Lucid has significant cash needs, including the recent expansion of its Arizona plant by nearly 3 million square feet and the establishment of a new facility in Saudi Arabia.
Rawlinson explained, "We're at a sort of capital-intensive stage where we're launching the Gravity, we're paying for suppliers' tooling and also ramping up our inventory of parts to produce that. Also, we're building out our sales service network internationally."
Looking ahead, Lucid plans to release another mid-size crossover model in late 2026. Despite shares dropping 3% on Monday, following a steep decline last week post-stock sale, Rawlinson remains optimistic.
He acknowledged a temporary downturn in demand but emphasized that the electric vehicle (EV) market's future remains bright, calling the situation a "blip."
Furthermore, Rawlinson criticized plug-in electric hybrids, referring to them as a mistake due to their dual system costs. He concluded on a positive note, stating that Lucid anticipates delivering 50% more cars in 2024 compared to 2023.
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