The Clap Lucid Group (NASDAQ: LCID) & Nikola (NASDAQ: NKLA) are looking to raise funds to boost production, as battery costs continue to increase.
The Deets Nikola plans on issuing up to $400 million of new stock at current market prices. The company wants to raise funds to ramp up production of its semi-trucks as well as complete the acquisition of Romeo Power, a battery pack supplier.
Lucid, on the other hand, submitted a shelf registration request to issue up to $8 billion in new stock over the next three years, allowing the company to issue stocks when needed.
Why this Matters Both companies are looking to boost production but are faced with increasing costs of production as well as new regulations that reduce incentives for EV buyers.