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By David Shepardson
DETROIT (Reuters) -Lucid CEO Peter Rawlinson mentioned on Monday {that a} inventory sale introduced final week will present the electrical luxurious sedan maker with a “money runway effectively into 2026.”
Rawlinson mentioned in an interview on the sidelines of a Reuters Subsequent occasion that the inventory sale, which raised about $1.75 billion, “serves to assist the way forward for the corporate long run” because it prepares to start constructing its Gravity SUV earlier than the top of the yr.
Final week, Lucid mentioned it anticipated the providing to boost $1.67 billion however on Monday the corporate mentioned the providing had raised almost $1.75 billion, including that its bills are “dominated by long-term investments.”
Rawlinson mentioned the corporate has “5 massive bunches of money” wants together with its growth earlier this yr of its plant in Arizona by almost 3 million sq. toes and a brand new plant in Saudi Arabia.
“We’re at a type of capital intensive stage the place we’re launching the Gravity, we’re paying for suppliers’ tooling and in addition ramping up our stock of elements to provide that,” Rawlinson mentioned. “And in addition we’re constructing out our gross sales service community internationally.”
Lucid is planning one other mid-size crossover mannequin in late 2026. Lucid shares had been down 3% on Monday after falling sharply final week following the inventory sale.
Rawlinson mentioned the longer term remains to be rosy for electrical automobiles regardless of some softening in demand. “I believe there is a non permanent hiccup right here, and there could also be a brief regression,” Rawlinson mentioned. “This can be a blip.”
He referred to as plug-in electrical hybrids a mistake. “They’re the worst of every part, and all the prices of two methods,” Rawlinson mentioned.
Lucid expects it is going to ship 50% extra automobiles in all of 2024 versus 2023, the CEO mentioned.
(Reporting by David Shepardson; Modifying by Leslie Adler and Invoice Berkrot)
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