Lucid Announces $875 Million Convertible Note Offering To Bolster Liquidity

Lucid Group’s stock slipped on Wednesday after the EV maker announced a new $875 million convertible note sale aimed at strengthening its balance sheet and extending debt maturities. The notes, due 2031, will be offered privately to institutional buyers, with an additional $100 million option available within 13 days. Management said most proceeds will go toward retiring 2026 notes while preserving liquidity for operations.

New convertible notes extend Lucid’s debt horizon

The 2031 convertible senior notes are unsecured and pay semiannual interest. Lucid said it may settle conversions in cash, stock, or a mix of both, with an initial conversion price of roughly $20.81 per share. The company can redeem the notes beginning November 2028, provided certain price thresholds are met.

Holders will also gain repurchase rights in 2029 and in the event of key corporate changes. Lucid expects net proceeds of about $863.5 million from the sale, excluding the additional $100 million option, according to Benzinga. A portion will retire outstanding 2026 convertible notes, while remaining funds will support general corporate purposes, including working capital and ongoing development.

Earnings miss highlights liquidity reliance and long-term goals

Lucid recently reported third-quarter revenue of $336.6 million, below the $379.1 million analyst consensus, and an adjusted loss of $2.65 per share versus expectations for a $2.27 loss. The company exited the quarter with $4.2 billion in liquidity and later expanded its delayed draw term loan with the Public Investment Fund from $750 million to roughly $2 billion. That increase pushed total available liquidity to about $5.5 billion.

Lucid has not yet updated its 2025 production outlook, which remains between 18,000 and 20,000 vehicles. Shares ended Wednesday’s session at $16.59, giving the company a market capitalization of roughly $5.38 billion as investors weighed near-term dilution risks against improved long-term flexibility.

EV.com tracks the evolving EV collector space and performance electric vehicles hitting the market. Explore our listings to find the best EVs in your area available today.