Electric vehicle maker Lucid expects a bigger-than-estimated loss for the third quarter and announced plans to offer more than 262 million shares, sending its shares down 12 percent in after-hours trading on Wall Street Wednesday.
Saudi Arabia’s Public Investment Fund, the company’s largest shareholder, also announced it would buy 374.7 million shares. The fund expects to retain a stake of about 59 percent in the company.
The company intends to use the proceeds from the offering as well as its private placement from the Public Investment Fund to finance its capital expenditures and other financing needs.
The Public Investment Fund announced in August that it would inject up to $1.5 billion in cash through its subsidiary, May Third Investment, as Lucid looks to ramp up production of a new SUV.
Saudi Arabia, which retains a roughly 60 percent stake in Lucid, has invested billions in the electric car maker as part of the kingdom's strategy to diversify its economy away from oil.
Lucid expects to record a loss from operations in the range of $765 million to $790 million for the quarter ending September 30.
That compares with analysts' average estimate of a loss of $751.65 million, according to data compiled by the London Stock Exchange Group.
Demand for electric vehicles in the United States has declined due to higher interest rates and the availability of cheaper hybrid alternatives.
