lucid group (LCID) – Get a free report saw its shares nearly double on speculation that Saudi Arabia’s Public Investment Fund, the country’s sovereign wealth fund, may be preparing to buy the shares it doesn’t already own.
The fund currently owns a 62% stake in Newark, California, a producer of high-end electric vehicles.
At last check, shares were up 45% as investors were eager for Lucid to get a fresh injection of capital.
A Betaville Report Speculate on the prospect of a deal could not be confirmed. The report has been quoted by various media outlets. Lucid said she does not comment on speculation.
Last November, Lucid said it carried out a program in the $600 million market and raised a total of $1.515 billion. That included $915 million that was raised through a private placement of 85.7 million shares with Ayar Third Investment, an affiliate of the Public Investment Fund.
Lucid shares have fallen more than 50% over the past year as the company had lowered its production guidance in August for the remainder of 2022. On November 16, 2021, Lucid shares were trading at $55.52.
On Jan. 12, the company said it produced 3,493 vehicles, up 53% sequentially, and built a total of 7,180 vehicles in 2022, exceeding its production guidance of 6,000 to 7,000 vehicles.
Lucid will report its fourth quarter results on February 22.
Lucid had originally estimated that it would produce 20,000 of its Air electric luxury sedans by 2022. The company had to lower its guidance twice, in February and August, due to global supply chain disruptions affecting all auto companies.
CEO Peter Rawlinson in August attributed his second-quarter loss of $555.3 million, or 33 cents a share, to “extraordinary” supply chain and logistics challenges. Revenues in the period were $97.3 million
“We have identified the major bottlenecks and are taking the appropriate steps: bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our manufacturing and logistics organization.”
For the third quarter, Lucid reported a net loss of $530 million on $195.5 million in revenue.
Lucid cuts prices
Lucid is trying to increase deliveries of its Air Grand Touring model by cutting the price by about 10% to $138,000 from $154,000, according to its website.
The reduction was made possible by the removal of several vehicle features that were previously standard equipment. Air Grand Touring’s DreamDrive Pro ADAS suite, valued at $10,000, Surreal Sound Pro, at $4,000, and 21-inch Aero Blade wheels, at $2,000, are now optional features.
Lucid’s other model, The Touring, sells for a starting price of $107,000.
The electric vehicle maker unveiled new details about Gravity, its first luxury electric SUV, on November 15.
Rawlinson said in a statement that Gravity “builds on everything we’ve accomplished so far, driving further advances from our in-house technology to create a luxury performance SUV like no other.”
Sherry House, Lucid’s chief financial officer, said the company believed Gravity would “unlock a very large and incremental addressable market for us.”
Gravity will be produced and available to purchase in 2024, but Lucid will accept pre-orders in 2023 and promises more information then.
