Lucid Group priced a $875 million offering of convertible senior notes due 2031, carrying a 7% annual coupon and set to settle on or about November 17, 2025. The notes are available only to qualified institutional buyers under Rule 144A, underscoring the company’s focus on institutional financing.
The notes can be converted at a rate of 48.0475 shares per $1,000 principal, which translates to an initial conversion price of $20.81 per share. This price represents a 22.5% premium to the last reported trading price of $16.99 on November 11, 2025, giving investors a clear upside potential if the company’s share price rises above the conversion threshold.
Lucid plans to use $752.2 million of the net proceeds to repurchase $755.7 million of its outstanding 1.25% convertible senior notes due 2026. The repurchase reduces immediate debt obligations and extends the company’s maturity profile, while the remaining proceeds will support general corporate purposes, capital expenditures, and operational needs.
The financing comes against a backdrop of challenging financials. In Q3 2025, Lucid reported revenue of $336.6 million, a net loss of $1.03 billion, and negative free cash flow of $955 million. Gross profit margin stood at –99.3%, operating margin at –297.5%, and net margin at –214.1%. These figures illustrate the company’s ongoing cash burn and margin compression, prompting the need for debt management and liquidity support.
Interim CEO Marc Winterhoff highlighted supply‑chain disruptions and the company’s focus on ramping up production, while also emphasizing progress in autonomous driving and intelligent mobility. The convertible note offering is part of Lucid’s broader strategy to maintain liquidity amid cash burn, extend debt maturities, and invest in future growth areas such as Level 4 autonomy and robotaxi services.
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