Lucid Group closed a private offering of $975 million in convertible senior notes due 2031 on November 17, 2025, generating approximately $962.4 million in net proceeds after fees. The offering also included the full exercise of an option that allowed initial purchasers to buy an additional $100 million in notes, bringing the total potential issuance to $1.075 billion.
Lucid used about $752.2 million of the net proceeds to repurchase roughly $755.7 million of its outstanding 1.25 % convertible senior notes due 2026. The repurchase reduces the company’s short‑term debt load and extends the maturity profile of its debt, shifting the balance sheet toward longer‑dated obligations that mature in 2031.
The remaining $210 million of net proceeds were earmarked for general corporate purposes, providing liquidity to support ongoing operations, capital expenditures, and potential future growth initiatives such as ramping production of the Lucid Gravity SUV and pursuing strategic partnerships.
Lucid’s Q3 2025 results, released on November 5, showed record quarterly revenue of $336.6 million, a 68 % year‑over‑year increase, but the company still posted a GAAP diluted net loss per share of $(3.31). The company’s cash burn remains high, prompting the need for additional liquidity and the decision to refinance older debt.
Chief Financial Officer Taoufiq Boussaid said the offering “has further strengthened our balance sheet and positioned the company for long‑term growth while minimizing any impact to our existing shareholders.” He added that the company remains grateful for the support of institutional investors and the Public Investment Fund, which share Lucid’s vision for a sustainable future.
Investors reacted negatively to the announcement, citing concerns about potential shareholder dilution from the convertible notes, the company’s recent earnings miss and revised production guidance, and the ongoing cash burn that signals continued capital needs.
The financing move extends Lucid’s debt maturity, giving the company a longer runway to achieve profitability while providing a buffer against short‑term liquidity pressures. However, the market’s cautious stance underscores the broader challenge of balancing growth investments with the need to reduce debt and improve cash flow.
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