Lucid Group has revealed that it will be raising another $8 billion in funding from a new offering as it plans to combat rising inflation, supply chain issues and general hurdles that come with being a start-up in the automotive space. As a brand, it already has a market cap of $27 billion, but it has been forced to cut back on production forecasts after the successful launch of the Lucid Air and more recently the triple motor Sapphire edition of the car which takes on the Tesla Model S Plaid.
The problem for Lucid Motors is that it is finding that the costs of building a premium EV are rising despite rising production and economies of scale. Lucid Motors also has plans to expand its factory in Arizona for which the local county also invested $114 million as it leased another 1,400 acres of land to add to its 600 acres.
So far Lucid Motors has raised $4.4 billion for just 2022 with funding also coming from the Saudi sovereign fund that chose Lucid Motors over Tesla. Peter Rawlinson, its CEO and CTO has revealed that it will be raising more money before the end of 2022. Lucid Motors has plans of a mixed shelf offering which means it can sell a variety of securities as a part of multiple separate offerings.
