Why Lucid Stock Spiraled Lower -- Is It a Buy Now?

Group 1 - Lucid Group has achieved seven consecutive quarters of record deliveries, with Q3 deliveries reaching 4,078 vehicles, marking a 23% increase from the previous quarter and a 46% increase year-over-year [1] - Stifel has lowered its price target for Lucid from $21 to $17 due to concerns about the company's need for additional capital in the coming years [2] - Lucid has increased its delayed draw term loan credit facility from $750 million to $2 billion, raising total liquidity from $4.2 billion to approximately $5.5 billion [3] Group 2 - The company has initiated an $875 million private offering of convertible senior notes due in 2031, with about $750 million allocated to repurchase existing notes due in 2026, raising concerns about potential shareholder dilution [5] - Saudi Arabia's Public Investment Fund (PIF) owns roughly 60% of Lucid, providing significant financial backing but also introducing complexity regarding future funding stability [6][8] - While PIF's support could help Lucid manage cash burn and potentially access the Saudi market, there is a risk that PIF could withdraw its backing, which would severely impact Lucid's financial health and operational funding [8]