In an aerial photo on March 29, 2023 in Newark, California, a sign was placed on the outside of Lucid’s headquarters. Electric vehicle maker Lucid has announced plans to lay off 1,300 employees, 18 percent of its workforce, as part of a restructuring plan.
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Lucid Group said Wednesday it is raising about $3 billion through a new equity offering, most of which will come from the Saudi fund that controls the luxury electric vehicle maker.
Shares of the company fell more than 6% after hours.
Lucid said about $1.8 billion of the total will come from a private placement of shares with Saudi Arabia’s Public Investment Fund (PIF). The remainder will be raised through a public offering of new shares that began Wednesday, said the company.
The PIF owns about 60.5% of Lucid. The new financing round is structured to keep the interest at the same level.
Lucid said it will use the new money for “general corporate purposes,” including capital expenditures and working capital.
Lucid had approximately $3.4 billion in cash and approximately $700 million in available lines of credit as of March 31, according to its most recent report.