Shares of Lucid Group (LCID) plunged about 18% in premarket trading on Thursday after the electric vehicle (EV) company announced plans to sell 262.4 million shares of common stock in a public offering. The company also announced its preliminary third-quarter results.

The announcement of a public offering follows a $1.5 billion cash injection by a subsidiary of Saudi Arabia's Public Investment Fund (PIF) just two months ago. In addition, LCID is granting its sole underwriter, Bank of America, a 30-day option to purchase up to 39.4 million additional shares of common stock.

LCID's largest shareholder will purchase additional shares

Along with this public offering, LCID announced that PIF subsidiary Ayar Third Investment Company, which is also Lucid's largest shareholder, will acquire 374.7 million common shares in a private placement. This strategic move will allow Ayar to retain its 58.8% stake in Lucid.

The electric vehicle maker said the proceeds would be used for general corporate purposes, including capital expenditures and working capital.

LCID Announces Preliminary Third Quarter Results

Additionally, Lucid announced its preliminary third-quarter results, with revenue expected to be between $199 million and $200 million. Meanwhile, the company expects a third-quarter loss of between $765 million and $790 million. LCID produced 1,805 vehicles and delivered 2,781 vehicles in the third quarter. The company is expected to report its third-quarter results on November 7.

Is Lucid Stock a good buy?

Analysts remain on the sidelines on LCID stock, with a consensus rating of “Hold” based on seven “Holds” and one “Sell.” Over the past year, Lucid shares have declined more than 30%, and the LCID average price target of $3.22 implies a downside potential of 1.8% from current levels.

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