Toronto, Ontario — This weekly Tuesday Ticker has its eyes on electric, with updates on Tesla’s current win streak and a lens on Lucid’s recent round of funding.
Tesla up nearly ten percent
Tesla stock is up nearly ten percent over the last five days, despite a voluntary safety recall on certain Model Y vehicles.
Meanwhile, the company’s deliveries in China have increased 2.4 percent month-over-month, from the end of April through May. In all, Tesa delivered 77,695 vehicles in the Chinese market, marking a 142 percent increase over its delivery numbers from the same period last year.
If the upswing continues and Tesla reaches an eight-day high, it will mark the EV maker’s longest winning streak since the stretch that ended Feb. 9 of this year. If gains continue further, the company could mark its best closing numbers since Nov. 1, 2022, this week.
At the time of writing, Tesla shares traded at US$219.02 per share, up 9.48 percent over the last five days and up 102.62 percent from the start of this year.
Lease on Lucid
Lucid Automotive is planning to raise around US$3 billion through a stock offering, the EV company announced last week.
Most of the funds will come from Saudi Arabia’s Public Investment Fund (PIF), which already owns more than 60 percent of the company. PIF has agreed to buy 265.7 million shares in a private placement for about $1.8 billion, at a suggested price of about $6.80 per share.
According to Lucid, the remaining funds will be raised from a public offering of 173.5 million shares of common stock.
Shares of Lucid dropped by more than 20 percent in the hours following the news.
Analysts speculate that the fundraising comes as the electric automaker struggles with “mounting losses and tightening cash reserves amid recession fears and a price war sparked by Tesla,” wrote Reuters.
At the end of Q1 2023, Lucid’s cash (and cash equivalents) had dropped to US$900 million, down from US$1.74 billion the previous quarter.