Lucid Group Inc (NASDAQ:LCID) shares are trading lower by 6.4% to $5.20 Thursday morning, despite a lack of company-specific news for the session. Weakness may be in sympathy with peer EV startup Rivian Automotive after the company announced a $1.5 billion proposed green convertible senior notes offering. Rivian also reported preliminary third-quarter revenue estimates.
The issuance of convertible notes increases Rivian’s debt load. Investors may be concerned about how this added debt will impact the company’s financial health and ability to execute its business plan. Increased debt can lead to higher interest expenses, reducing profitability.
In general, the performance and financial health of one company in the EV industry can influence market sentiment at large. Lucid Motors and Rivian target similar market segments with a focus on luxury electric vehicles.
What Happened With Rivian?
Rivian said it intends to offer an aggregate of $1.5 billion of green convertible senior notes due 2023 in a private offering to institutional buyers. The company plans to grant the purchasers the option to buy up to an additional $225 million…Read More
According to data from Benzinga Pro, Lucid Group has a 52-week high of $17.81 and a 52-week low of $4.97.
