Lucid Group (LCID) Paves the Way to Potentially Sell Up to $8 Billion Worth of Shares

Lucid Group

This is not investment advice. The author has no position in any of the stocks mentioned. has a disclosure and ethics policy.

Lucid Group shares appear to have gone nowhere over the past few months, comfortably ensconced in their apparent proclivity for a sub-$20 stock price. Against this backdrop, a new threat has emerged that might extract capitulatory action from some frustrated investors.

To wit, Lucid Group has now filed a Form S-3 with the SEC, paving the way for the issuance of a maximum of $8 billion worth of new securities:

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Lucid Group, Inc. may from time to time offer and sell common stock, preferred stock, depositary shares representing preferred stock, debt securities, warrants, purchase contracts or units in one or more offerings of up to $8,000,000,000 in aggregate offering price. In addition, this prospectus relates to the issuance by us of up to 44,350,000 shares of the Company’s Class A common stock, par value $0.0001 per share (“common stock”), consisting of (a) 42,850,000 shares of common stock that are issuable upon exercise of the Private Placement Warrants (as defined below) and (b) 1,500,000 shares of common stock issuable upon exercise of the Working Capital Warrants (as defined below).

This filing has also raised the specter of the Saudi PIF potentially reducing its gigantic stake in Lucid Group:

As per the most recent Form 13-F filed by the Saudi PIF with the SEC in August, the sovereign wealth fund maintained a 62.7 percent stake in Lucid Group, consisting of 1,015,252,523 shares. As of the end of June, the sovereign wealth fund’s stake in Lucid Group was valued at $17.42 billion.

Readers should note that Lucid Group constitutes a prestige project for the Saudis, who are currently pursuing aggressive non-oil industrialization and de-carbonization strategies. As one of the first major Western EV manufacturers to establish a material production footprint at the King Abdullah Economic City (KAEC) via the upcoming 155,000-units-per-year manufacturing facility, Lucid Group’s importance to Saudi Arabia’s green pivot can’t be ignored. However, now that the Kingdom has provided the company with $3.2 billion in incentives over a 15-year period for this manufacturing facility, coupled with a gigantic order of up to 100,000 EVs, the Saudis might feel that enough support has been provided to the nascent EV player, thereby paving the ground for the deployment of their capital to newer pastures.

Note: The post has been updated to include additional details related to the shelf offering.

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