EVs Raise Cash

EV makers Nikola and Lucid both announced secondary stock offerings today. As we mentioned in the textbook, SEOs often have a negative effect on stock prices, and these announcements were not exceptions. Nikola announced a $400 million stock offering, to be sold at the market price. The stock price dropped about 10 percent on the announcement. For Lucid, the company announced an $8 billion shelf offer to be sold over the next three years. In this case, the stock "only" dropped about 7 percent.