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PIF-backed Lucid shares tumble on anticipated Q3 losses

Lucid shares. The Lucid Grand Touring. The company delivered 500 more cars than expected in Q3 Lucid
The Lucid Grand Touring model. The company delivered 500 more cars than expected in Q3
  • Lucid offering 262m shares
  • PIF to increase its stock in Lucid
  • Loss up to $790m expected

Shares of Saudi-backed US luxury electric vehicle maker Lucid fell more than 12 percent in pre-market trading on Thursday.

The drop came after the company announced it anticipates reporting a larger-than-expected loss for the third quarter and a public offering of more than 262 million shares. 

Saudi Arabia’s Public Investment Fund, already a majority shareholder in the company, will buy a further 374.7 million shares. 

PIF expects to maintain its approximate 58.8 percent ownership in Lucid, the statement said. 

California-based Lucid’s stock price is down 22 percent since the start of the year.

Last week, Lucid announced that it had exceeded market expectations for its third quarter by delivering 24 percent more cars than had been forecast.

Analysts cited discounts and more favourable finance options as reasons for the sharp increase. 

Lucid delivered 2,781 vehicles in the third quarter, ahead of estimates of 2,242, according to analysts polled by Visible Alpha.

In August, Lucid received a cash injection of $1.5 billion from its majority stockholder Ayar Third Investment Company, an affiliate of PIF, which was “expected to provide sufficient liquidity into at least the fourth quarter of 2025”, Gagan Dhingra, interim chief financial officer and principal accounting officer at Lucid, said.

It was the second time this year that Lucid has tapped Ayar for funding. In March the Saudi company agreed to buy $1 billion of a newly created series of convertible stock via private placement.

Lucid expects to report a loss from operations in the range of $765 million to $790 million for the third quarter, compared with analysts’ average estimate of $751.65 million loss.

The company is scheduled to report its Q3 results on November 7.

Sales of EVs in the US have been weakening as a result of high interest rates and the availability of cheaper hybrid alternatives.