Lucid Group Inc (NASDAQ:LCID) stock plunges 18.85% (As on November 9, 12:14:07 AM UTC-4, Source: Google Finance) after the company posted lower than expected profit and revenue for the third quarter of FY 22. The Company reported strong customer demand for Lucid Air with reservations over 34,000, as of November 7, 2022, representing potential sales of over $3.2 billion. This reservation number does not include the up to 100,000 vehicles under the agreement with the government of Saudi Arabia. Lucid ended the quarter with approximately $3.85 billion cash, cash equivalents, and investments, which is expected to fund the Company at least into the fourth quarter of 2023. The company plans  to open reservations for Project Gravity SUV in early 2023. The company has achieved the 2022 production target of 6,000-7,000 vehicles and is on track to achieve it.  The company had record quarterly production of 2,282 vehicles, more than triple Q2, and deliveries of 1,398, which was more than double Q2.

LCID in the third quarter of FY 22 has reported the adjusted earnings per share of 40 cents, missing the analysts’ estimates for the adjusted earnings per share of 33 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $195.46 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue by 15.93%.

Meanwhile, the company has entered into an “at-the-market” program pursuant to an equity distribution agreement, dated November 8, 2022, between the Company and BofA Securities, Inc., Barclays Capital Inc. and Citigroup Global Markets Inc. as managers. Under the at-the-market program, Lucid may sell up to $600 million of shares of its common stock through the managers. In addition, Lucid has entered into an agreement with its majority stockholder and affiliate of the Public Investment Fund (“PIF”), Ayar Third Investment Company (“Ayar”), pursuant to which Ayar has agreed to purchase from Lucid up to $915 million of shares of its common stock in one or more private placements through at least March 31, 2023. Ayar will pay a price per share equal to the volume-weighted average price to the public of the shares that Lucid actually sold in the at-the-market program during such calendar quarter. Lucid intends to use the net proceeds from the at-the-market program, as well as from the private placements by its majority stockholder, for general corporate purposes, which may include, among other things, capital expenditures and working capital.