Lucid Raises $875M, Investors Wary of Potential Dilution

On November 13, 2025, luxury electric vehicle manufacturer Lucid Group announced the pricing of an $875 million offering of convertible senior notes due in 2031. The company also gave initial buyers an option to purchase up to an additional $100 million in notes.

Lucid stated that it plans to use around $752 million of the proceeds to repurchase older convertible notes due in 2026, while the remaining funds will go towards general corporate purposes. This move effectively extends Lucid's debt maturity.

However, the market reacted negatively to the announcement, with Lucid's shares declining by over 6% as investors digested the potential dilution risk. Convertible notes can be later converted into company stock, which often worries investors as it could dilute the value of existing shareholders' holdings.

Despite the recent announcements of partnerships related to autonomous driving, the electric vehicle sector has faced broader challenges, including slowing sales, rising competition, and weaker-than-expected delivery numbers. Lucid's stock has been highly volatile, recording 51 moves greater than 5% over the past year.

Lucid also issued a recall of 865 Air sedans from model years 2022-2025 after identifying a software bug that could cause the rearview camera to fail to display when reversing. The company has released an over-the-air update to fix the issue, and all recall repairs are free for owners.