Shares of Lucid Motors, the high-end electric vehicle manufacturer, are facing significant challenges as they are projected to close at their lowest price ever. The stock has plummeted approximately 97% from its peak in 2021, showing little hope of recovery. On Wednesday, the stock dipped by about 6.5%, with investors reacting to the company’s announcement regarding a debt offering of $875 million through convertible senior notes due in 2031.
Earlier in the year, Lucid had made headlines by raising $1.1 billion through a similar offering of convertible notes maturing in 2030. This latest move comes in the face of escalating financial pressures, highlighted in the company’s recent third-quarter earnings report where it reported an adjusted net loss exceeding $828 million, far greater than analysts had anticipated. Additionally, the company’s negative free cash flow hit $955 million for the quarter.
The current situation reflects the ongoing difficulties Lucid faces in stabilizing its financial position amid increased competition in the electric vehicle sector and addressing production challenges. The previous record low close for the stock was on September 4, following a major reverse stock split, closing at $16.16. As Lucid navigates these turbulent waters, industry observers will be watching closely to see how it manages its financial health and strategic direction moving forward.