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Lucid Group Files Massive Shelf Offering, Stock Slips Lower

Published 08/29/2022, 07:14 PM
Updated 08/29/2022, 07:46 PM
© Reuters.  Lucid Group (LCID) Files Massive Shelf Offering, Stock Slips Lower

By Vlad Schepkov

Shares of Lucid Group (NASDAQ:LCID) are slipping lower in Monday’s after-hours session, after the company filed a massive S-3 mixed shelf registration statement.

The struggling luxury electric vehicle manufacturer registered to offer up to $8,000,000,000 of common and preferred stock, depositary shares, debt securities, warrants, purchase contracts and units.

Additionally, LCID’s stockholders may dispose of up to 1,233,800,445 shares and 44,350,000 warrants to purchase common stock.

A mixed shelf is NOT an offering – it serves to pre-register securities and simplify an actual offering process should the company elect to do one. As such, there’s no telling how soon or how big Lucid’s next capital raise may be.

In its most recent quarter – Q2, reported on August 3rd, 2022 – the company burned through $800 million of cash, but had $4.6 billion on its balance sheet providing for nearly 6 quarters of leeway at the current run rate.

Still, the dilution risk brings a further dent to the already waning investors’ confidence – LCID stock is slipping ~3% lower post-filing.

The news is the latest in the series of the company’s misfortunes - once dubbed by some as the “Tesla Killer”, Lucid saw shares plunge 61% in 2022, driven by halved full-year production guidance (6,000-7,000 vehicles vs prior indication of 12,000-14,000), huge miss on earnings, and constant supply chain hurdles.

By comparison, shares of Tesla (NASDAQ:TSLA) have “only” lost 28% YTD.

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