Lucid plans to raise $1.67 billion by selling stocks, but its shares dropped over 18% in premarket trading after the company announced a larger-than-expected loss for the third quarter.
Lucid expects to report an operating loss of between $765 million and $790 million for the quarter ending September 30, which is worse than analysts had predicted ($751.7 million).
The company also signed a deal with Ayar Third Investment, part of Saudi Arabia’s Public Investment Fund, which is its biggest shareholder, to sell nearly 375 million shares in a private placement.
In August, the fund’s affiliate had promised an additional $1.5 billion, which Lucid thought would be enough money to last until the fourth quarter of next year. At the end of the second quarter, Lucid had about $1.35 billion in cash and cash equivalents.
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