Lucid Shares Drop 9% to $6.27 Despite $1.05B Funding

Shares of electric vehicle maker Lucid Group plunged more than 9 percent Thursday, closing at $6.27 after dipping as low as $6.22 during the session in Newark, California. The decline from the previous close of $6.91 deepened an April selloff, with trading volume surging to about 37 million shares, well above the average.

The drop came despite a recent $1.05 billion funding package that included $300 million from a common stock sale, $550 million in convertible preferred stock from an affiliate of Saudi Arabia's Public Investment Fund and $200 million from Uber Technologies, bringing Uber's total commitment to $500 million. Uber disclosed a stake of 11.5 percent, or roughly 37.8 million Class A shares, in a regulatory filing. The companies also expanded their robotaxi partnership, with Uber increasing its order to at least 35,000 Lucid vehicles for a planned global autonomous ride-hailing service involving Nuro's self-driving technology.

Lucid is seeking shareholder approval to add 23.5 million shares to its 2021 stock incentive plan, which would expand the authorized pool to over 61 million shares. Investors have expressed concerns over potential dilution from the new shares...