Lucid stock pops after the EV maker raised $1.5 billion

Yahoo Finance Live anchors discuss the rise in Lucid stock following the EV maker’s $1.5 billion stock sale.

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- Welcome back. Let's hit a few hot Yahoo Finance tickers ahead of that opening bell on Wall Street. Shares of Lucid in focus this morning after the EV maker announced that is completed at the market equity offering program. Lucid sold more than 56.2 million shares of its common stock raising over one and half billion dollars.

And as is typical with offerings like this, Lucid saying it's using it for general corporate purposes. Which, in this case, is to get more cars produced and out the door. The other problem here, guys, with Lucid it is-- there's still concerns around how many-- what is the true demand for this very expensive Lucid vehicle. The high end of this-- high-end vehicle here over $130,000.

And reservations coming out of that third quarter already starting to come down a little bit. Not a good thing. Not what you want to see from an EV start-up.

- Yeah.

- Go ahead.

- The whole is just marketed towards a very affluent consumer at a time where Tesla was really pounding the pavement on mass market. We saw more entry in the mass market side over the next couple of years. As there's more battery development again or among at least some of the more legacy automotive players. That's where you're going to see some of that additional kind of affluent market play come in.

But I think as of right now, for the Lucid category, a lot of people that are either looking at a Lucid or looking at a Tesla or comparing it even against a Rivian, these are some super pricey vehicles out there. And now it's just a matter of how people are going to, in this environment, continue to want to finance a vehicle like that regardless--

- [INAUDIBLE]

- --of how far can you go on one charge.

- Look at how nice it is. It goes over 400 miles on a charge.

- And 20, yeah.

- I mean, the competitor to this might be more the Porsche electric vehicle.

- Porsche play, Mercedes EQ3. Yeah.

- Yeah. I mean, I think you're more talking at the luxury end of the spectrum.

- Yeah.

- Maybe the Tesla S.

- S or the X.

- Yeah. Maybe that's a little more comparable.

- I could see you in a Lucid July.

- Get that Lucid.

- I mean, I could see myself--

- I think you would love it.

- --in a Lucid. I'm just not--

- I think you would love the Lucid. I just see it.

- --on that bracket of buying the Lucid.

- Fire up the graphics. Let's go.

- I think that's you.

- That's the differen-- I mean, what's interesting to me too is this placement that they are doing. Who is buying the shares because most of it was raised by their biggest existing investor? Which is the Saudi public investment fund. The stake-- their stake remains unchanged the way it was structured at just over 60%.

But it's not as though it is getting funding from New at different sources, by and large, it's from the existing investor that is putting more cash into this.

- You do have to-- when is that moment of reckoning. Just because you come up with a flashy and you have produce or concept car, and you're making these electric cars doesn't mean you're going to survive for the next decade. Not when you have well-established automakers like a Ford and GM finally getting their act together in EVs. I mean, can we case--

- But it can-- no, no but it--

- Can we say Lucid is going to be around a decade from now?

- But it's apples and oranges, right. The GM and Ford stuff-- the Lucid customer is not the GM and Ford customer.

- So you're saying Lucid is the Porsche of the next decade, maybe.

- It may be.

- Yeah [INAUDIBLE].

- Or at least it's-- I'm not saying it will, or it won't be around.

- Well, it's playing for that same consumer.

- I'm just saying like you have to think about where it's fitting into the equation, right? And it's not fitting into that mass market, as you were discussing.

- And the model that those previous legacy automakers have really leaned into is the ability to have not just the dealerships but the number of existing clients within their network that they could say, hey yeah, just come in trade-in and trade up. And we can keep you in our same Mercedes network or keep you in our same Porsche network. Because you love the logo, why not?

- You love the logo.

- Yeah. Exactly.