Lucid Motors, Nikola Seek Additional Funding to Ramp Up Production

Photo: Lucid Motors

Electric vehicle (EV) manufacturers Lucid Motors and Nikola are seeking additional funding to help ramp up production, amidst increasing battery costs and new federal requirements set to limit buyers’ incentives.

On Monday, Lucid filed a shelf registration to issue as much as $8 billion in new stock over the next three years, as detailed in a report from CNBC.

The shelf registration category lets companies issue the stock on an as-needed basis, which Lucid says will “provide greater flexibility” for raising new funds in the future. At present, Lucid says it has no plans to sell any of the stock.

Lucid had around $4.6 billion in cash at the end of Q2, which it said earlier this month is enough to fund operations and capital expenses into next year.

In a regulatory filing on Tuesday, Nikola also announced plans to issue around $400 million in stock with shares sold at overall market prices.

Nikola said in its Q2 earnings call it’s hoping to raise funding ahead of ramping up production of the Tre electric semi, and as it acquires battery pack supplier Romeo Power for $144 million.

As of the end of June, Nikola had $529 million in cash, with another $312 million available through an equity line from Tumim Stone Capital.