EV Startups Lucid and Nikola Aim To Raise More Money

Lucid and Nikola need more money, and both brands have plans on how to get some.

Changes in the economy and rising battery costs have companies seeking to raise money, to meet demand. Lucid, in particular, has been open about its struggles to meet customer reservations. Cars have been stuck in manufacturing limbo, and things have gotten so bad that Lucid halved its delivery goals by half for the rest of the year. Yet, delivering cars means generating revenue, and without that, companies can’t really continue to operate.

Lucid wants to raise more cash via a universal shelf offering. If all goes well by the SEC, the shelf offering should allow Lucid to raise up to $8 billion of capital, over the next three years. That should help the brand ease its production woes, and get cars on the road. Lucid’s stock dipped 3% after announcing this plan.

Similarly, Nikola is issuing $400 million of new stock, aimed at generating cash for the company. According to multiple sources, Nikola has about $529 million of liquid cash, and about $312 million available via a line of credit. This comes after Nikola’s announcement that it was purchasing battery manufacturer, Romeo Power.

Both decisions are still awaiting SEC approval, but if they do go through, it could give both companies much-needed cash to get products out the door. Sharply rising battery costs, supply-chain woes, and the state of the economy have put EV startups in the hot seat, in search of capital to keep functioning.

Discuss this story on our Lucid Forum.

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