Why Lucid Stock Is Plummeting Again This Week
Shares of Lucid (NASDAQ: LCID) are getting crushed again this week. The electric-vehicle (EV) company's share price was down roughly 16% from last Friday's market close as of 1 p.m. ET today, according to data from S&P Global Market Intelligence.
Lucid announced yesterday that it would be raising $3 billion in funding through a new share offering. While the new capital injection will allow the business to continue operating until 2025, the new stock sale will result in significant dilution for existing shareholders.
Last year, Lucid posted an operating loss of roughly $2.59 billion, and the company posted an operating loss of approximately $772.2 million in this year's first quarter. While the EV business is scaling rapidly and grew sales 159% year over year, it's years away from being able to shift into profitability, and it will need to continue to raise cash in order to reach economies of scale that allow it to generate profits.
Source Fool.com
