Why Tesla Rival Lucid Stock Shot Up Over 6% After-Hours Today

Lucid Group Inc LCID shares soared 6.1% in extended trading on Mondayafter the electric vehicle company saidit had finalized a $1.5 billion equity offering, first announced in November.

What Happened: The Newark, California-based EV maker raised the bulk of cash nearly $915 million from a private sale of almost 86 million shares to Saudi Arabias Public Investment Fund.

The rest of the 600 million was raised through a traditional secondary stock offering, in which the Peter Rawlinson-led company sold an additional 56 million shares.

Rawlinson is known for his work as a vehicle engineer on rival Tesla Inc TSLA s Model S and also Lucids own Air.

See Also: How To Buy Electric Vehicle (EV) Shares

Why It Matters: Lucid said it expects the additional capital raised will further strengthen its balance sheet and liquidity position.

Lucid has reported $3.85 billion in cash in its third-quarter 2022 earnings. This is expected to fund the company at least into the fourth quarter of 2023.

Tesla CEO Elon Musk took a swipe at Lucids offer of discounts this month by saying They are not long for this world.

They are not long for this world Elon Musk (@elonmusk) December 9, 2022Price Action: Lucid shares closed 1.9% lower at $7.23 in regular trading and rose 6.1% to $7.67 in the after-hours session, according to Benzinga Pro data.

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