Lucid triggers selloff with dilutive new stock sale plan and third-quarter loss expectations

Additionally, Saudi Arabia's Public Investment Fund, a majority shareholder in Lucid, announced it would acquire 374.7 million shares of the company. The fund expects to retain a nearly 59% stake in Lucid.

The sovereign wealth fund's latest investment underscores the importance of this lifeline for Lucid in the race for survival among struggling EV startups.

The electric car maker intends to use the proceeds from the offering as well as the private placement of PIF to fund its capital expenditures and other corporate financing needs.

PIF said in August it would raise up to $1.5 billion in cash through its Ayar Third Investment subsidiary as Lucid looks to ramp up production of a new SUV.

The Saudi government, which owns nearly 60% of Lucid, has invested billions in the company as part of the kingdom's strategy to diversify its economy beyond oil.

Lucid expects an operating loss in the range of $765 million to $790 million for the quarter ended Sept. 30, compared with analysts' average estimate of $751.65 million, according to data compiled by LSEG.

The company is scheduled to report its third-quarter results on November 7.

Demand for electric vehicles in the United States has declined due to high interest rates and the availability of cheaper hybrid alternatives.

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