Lucid Group, Inc. (NASDAQ: LCID), a leading electric vehicle manufacturer known for advanced EV technology and premium design, announced the pricing of a $875 million private offering of Convertible Senior Notes due 2031, reinforcing the company’s long-term liquidity position and capital structure strategy.
The offering was made to qualified institutional investors under Rule 144A of the Securities Act of 1933. Lucid also granted the initial purchasers an option to buy up to an additional $100 million principal amount of notes, exercisable within 13 days following issuance. The transaction is expected to close in mid-November, subject to customary closing conditions.
Key Terms of the Convertible Notes Offering
The Convertible Senior Notes are senior unsecured obligations of Lucid Group and carry an annual interest rate of 7.00%, payable semiannually on May 1 and November 1, beginning in 2026. The notes will mature on November 1, 2031, unless earlier converted, redeemed, or repurchased.
Lucid retains the option to settle conversions in cash, shares of its Class A common stock, or a combination of both. Prior to August 1, 2031, conversion will generally be permitted only upon the occurrence of specified conditions. Thereafter, noteholders may convert their notes at their discretion until shortly before maturity.
The initial conversion rate is 48.0475 shares per $1,000 principal amount, implying a conversion price of approximately $20.81 per share. This conversion price represents a premium to Lucid’s recent trading levels, signaling institutional confidence in the company’s long-term valuation outlook.
Strategic Use of Proceeds and Balance Sheet Impact
Lucid expects net proceeds from the offering to total approximately $863.5 million, after accounting for underwriting discounts and estimated offering expenses. If the additional purchase option is fully exercised, net proceeds could reach approximately $962.4 million.
The company plans to allocate approximately $752 million of the proceeds toward repurchasing a portion of its outstanding 1.25% Convertible Senior Notes due 2026. This transaction is intended to reduce near-term refinancing risk, extend debt maturities, and improve overall financial flexibility.
The remaining proceeds will be used for general corporate purposes, including working capital, capital expenditures, and continued investment in vehicle development, manufacturing efficiency, and future growth initiatives.
Investor Outlook and Market Positioning
This financing transaction reflects Lucid Group’s proactive approach to capital management as the electric vehicle industry continues to evolve amid changing market conditions and increased competition. By securing long-term capital and optimizing its debt structure, Lucid aims to support operational continuity while advancing its product roadmap.
Lucid remains focused on scaling production, improving cost efficiency, and advancing proprietary electric powertrain technology. The company’s vertically integrated approach and emphasis on performance, range, and innovation continue to differentiate its brand in the premium EV segment.
Regulatory and Compliance Disclosure
The Convertible Senior Notes and any shares of Class A common stock issuable upon conversion have not been registered under U.S. securities laws. Accordingly, they may not be offered or sold in the United States absent registration or an applicable exemption.
Summary for Investors
- Issuer: Lucid Group, Inc. (NASDAQ: LCID)
- Offering Size: $875 million (up to $975 million with option)
- Instrument: Convertible Senior Notes
- Maturity: 2031
- Interest Rate: 7.00%
- Primary Use of Proceeds: Debt refinancing and general corporate purposes
The successful pricing of this offering underscores continued institutional investor interest in Lucid Group’s long-term strategy and reinforces the company’s commitment to maintaining liquidity while pursuing sustainable growth in the global electric vehicle market.
