### Lucid Stock Plummets Following Announcement of Share Sale Before Key SUV Launch

Lucid Motors experienced a significant drop in its stock price following the announcement of a new share sale designed to raise capital. The electric vehicle (EV) manufacturer disclosed its plan to offer up to 262,446,931 shares, potentially generating around $1.67 billion. The raised funds aim to support general corporate purposes, capital expenditures, and working capital needs as Lucid approaches the release of its new EV SUV, the Lucid Gravity.

In addition, the company's major stakeholder, Ayar Third Investment Company, affiliated with the Public Investment Fund, will purchase an extra 374,717,927 shares through a private placement. This move ensures Ayar maintains its 58.8% ownership without experiencing dilution. Consequently, Lucid’s stock plunged by 16% during midday trading on Thursday.

The share sale comes a mere two months after Lucid's recent financial boost from Ayar, which provided a $1.5 billion cash infusion. Preliminary third-quarter financial reports indicate that Lucid is expecting a loss from operations ranging between $765 million and $790 million, matching the second quarter's $790 million loss. Third-quarter revenue is anticipated to be between $199 million and $200 million, surpassing Bloomberg’s estimate of $196.4 million.

Moreover, Lucid stated it had approximately $1.9 billion in cash and equivalents, with a total liquidity amounting to $4 billion prior to this new round of capital raising. Despite delivering 2,781 vehicles during the quarter, which exceeded Bloomberg's estimates, Lucid fell short in vehicle production, manufacturing only 1,805 cars.

The company holds high hopes for its upcoming Lucid Gravity SUV, which is scheduled to start production later this year. Lucid CEO Peter Rawlinson has high expectations for the Gravity, suggesting the market potential for the SUV is six times greater than that of the Lucid Air sedan. According to Rawlinson, the Arizona plant will eventually have the capacity to produce 90,000 Gravity SUVs annually. However, questions remain about whether Lucid can manufacture the Gravity efficiently and under cost. The Gravity is expected to start around $80,000 in the U.S., just meeting the eligibility criteria for the federal EV tax credit.