Last week, Lucid Group Inc. announced plans to raise another $8 billion to tackle supply chain issues and inflation concerns.
Lucid had completed its series D funding round back in 2018 to fund an Arizona factory, and then it went public via a shell company in 2021. After that, the company (like many other EV makers) has found that it’s getting more and more expensive to build vehicles, let alone EVs.
The luxury car brand reportedly has a market capitalization of about $27 billion. However, it recently announced that it would be forced to halve its 2022 production forecasts. That change is due, in part, to supply chain constraints and logistical issues.
According to CEO Peter Rawlinson, Lucid had apparently secured the $4.4 billion it needed until the end of the year, but the company wouldn’t wait until then to raise more cash – hence the recent announcement about trying to raise another $8 billion.
So far, Lucid has made just one model, the Lucid Air Dream, and even now the company is struggling to ramp up production. But it’s hoping to branch out with a more affordable version called the Lucid Air Pure, which is supposed to undercut the Tesla Model S with better specs and a lower price. It’s also planning a more expensive, 1200 HP “Sapphire” edition to compete with Tesla’s Model S Plaid … but, considering Lucid’s funding and production concerns, though, let’s not get our hopes up just yet.
While we wait and see what happens there, check out this walk-through of Lucid’s Arizona production facility, below, hosted by Lucid CEO (and chief vehicle engineer of the Tesla Model S, it should be noted). Once you’ve done that, let us know what you think of Lucid’s odds of making their raise in the comments.
The Grand Tour | Lucid AMP-1
SOURCE | IMAGES: LUCID MOTORS, VIA INSIDE EVs.