LCID
Lucid Group, INC
NASDAQ
DEF 14A: Lucid Group Seeks Stockholder Approval for Director Elections and Amended Stock Incentive Plan
Sentiment:
Proxy Statement
25 April 2024 6:06 AM
Lucid Group is holding its annual meeting on June 4, 2024, to vote on director elections, auditor ratification, executive compensation, and an amendment to its stock incentive plan.
Capital raise
Ayar agreed to purchase 100,000 shares of our Series A Convertible Preferred Stock for an aggregate purchase price of $1,000,000,000 in a private placement.
On March, 29, 2024, we issued the shares of Convertible Preferred Stock pursuant to the March 2024 Subscription Agreement and received aggregate proceeds of $1,000,000,000.
Summary
- Lucid Group's annual meeting of stockholders will be held virtually on June 4, 2024.
- Stockholders will vote on the election of nine director nominees, ratification of KPMG LLP as the independent auditor, an advisory vote on executive compensation, and approval of an amendment to the stock incentive plan.
- The board recommends voting for all director nominees, the ratification of KPMG, the approval of executive compensation, and the approval of the amended stock incentive plan.
- The proposed amendment to the stock incentive plan would increase the authorized shares by 119,000,000 to a total of 194,669,244 shares.
- The company believes the additional shares are needed to attract, retain, and motivate employees in a competitive market.
- As of April 2, 2024, there were 11,865,547 shares remaining available for issuance under the existing plan.
- The company's largest stockholder, Ayar Third Investment Company, has the right to nominate a certain number of directors based on its ownership percentage.
- The board has determined that all director nominees, except Peter Rawlinson, are independent.
- The company's executive compensation program is designed to attract, retain, and motivate top-level talent.
- The company has implemented several corporate governance best practices, including stock ownership guidelines and a clawback policy.
Sentiment
Score: 7
Explanation: The document presents a balanced view of the company's progress and future plans. While there are positive aspects such as new product launches and partnerships, there are also challenges related to competition and corporate governance. The overall tone is optimistic but realistic.
Positives
- The company is taking steps to ensure it can attract and retain talent by increasing the number of shares available under its stock incentive plan.
- The company has implemented several corporate governance best practices, including stock ownership guidelines and a clawback policy.
- The board is composed of a majority of independent directors.
- The company is committed to diversity and inclusion, as reflected in the composition of its board.
Negatives
- The company is a controlled company, which means it is exempt from certain corporate governance requirements.
- The company's largest stockholder has significant influence over the company's board and management.
- The company's executive compensation program is complex and may not be easily understood by all stockholders.
Risks
- If the proposed amendment to the stock incentive plan is not approved, the company's ability to attract and retain talent may be negatively impacted.
- The company's reliance on a single large stockholder could create conflicts of interest.
- The company's executive compensation program could incentivize excessive risk-taking.
Future Outlook
The company remains optimistic about the future and confident in its ability to adapt and thrive in rapidly evolving environments. It will continue to prioritize innovation, sustainability, cost optimization, and customer-centricity as it pursues larger opportunities for growth and value creation.
Management Comments
- Peter Rawlinson, CEO, stated that the company accomplished a number of goals in 2023 despite many challenges.
- Peter Rawlinson, CEO, highlighted the delivery of the Lucid Air Sapphire and Pure, the technology licensing deal with Aston Martin, and the unveiling of the Lucid Gravity SUV.
- Peter Rawlinson, CEO, expressed optimism about the future and confidence in the company's ability to adapt and thrive.
Industry Context
The announcement reflects the ongoing competition in the electric vehicle market, with companies like Lucid seeking to differentiate themselves through technology, partnerships, and new product offerings. The focus on sustainability and efficiency aligns with broader industry trends.
Comparison to Industry Standards
- The document mentions Lucid Air's EPA-estimated range of 516 miles per charge with 19-inch wheels, positioning it as a leader in range compared to competitors like Tesla Model S Long Range (405 miles) and Mercedes-Benz EQS 450+ (350 miles).
- The document highlights Lucid Air Pure's driving efficiency of 4.74 miles of range per kilowatt-hour, suggesting a competitive edge against other EVs such as Tesla Model 3 (4.0 miles/kWh) and Chevrolet Bolt (3.8 miles/kWh).
- The document notes Lucid Air's low coefficient of drag (0.197), indicating superior aerodynamics compared to Porsche Taycan (0.22) and Audi e-tron GT (0.24).
Stakeholder Impact
- The proposed amendment to the stock incentive plan could impact shareholders by diluting their ownership stake.
- The company's performance and execution of its business plan will impact employees, customers, and suppliers.
- The company's commitment to sustainability and environmental responsibility will impact the broader community.
Next Steps
- Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
- The company will hold its annual meeting on June 4, 2024, to discuss and vote on the proposals.
- The company will continue to execute its business plan and pursue opportunities for growth and value creation.
Related Party Transactions
- The company has entered into several transactions with related parties, including a manufacturing facility lease, a credit facility agreement, a construction service contract, and a subscription agreement.
- These transactions involve entities in which the company's largest stockholder, Ayar Third Investment Company, or its affiliates have a significant ownership interest.
- The company has adopted a related person transaction policy to ensure that such transactions are reviewed and approved by the Audit Committee.
Key Dates
- February 22, 2021: Date of the Merger Agreement by and among Churchill Capital Corp IV, a Delaware corporation (the SPAC), a new wholly-owned subsidiary of the SPAC and the Company.
- July 23, 2021: Effective date of the 2021 Stock Incentive Plan.
- June 9, 2022: Date the Plan was previously amended and restated.
- April 24, 2023: Date the Lucid Group, Inc. Second Amended and Restated 2021 Stock Incentive Plan was approved by stockholders.
- April 25, 2024: Expected date of availability of the Proxy Statement and the Company's Annual Report to Stockholders.
- June 3, 2024: Deadline to complete, sign, date, and mail your proxy card.
- June 3, 2024: Deadline to vote by Internet or Telephone.
- June 4, 2024: Date of the Annual Meeting of Stockholders.
- December 26, 2024: Deadline for stockholders to submit proposals for inclusion in the Proxy Statement for the 2025 annual meeting.
- February 4, 2025: Earliest date for stockholders to submit nominations for director or proposals for consideration at the 2025 Annual Meeting.
- March 6, 2025: Latest date for stockholders to submit nominations for director or proposals for consideration at the 2025 Annual Meeting.
Keywords
stock incentive plan, annual meeting, director elections, executive compensation, corporate governance, Lucid Group, Ayar, KPMG
LCID
Lucid Group, INC
NASDAQ
Sector: TBD
Filings with Classifications
Better than expected
17 July 2025 8:38 AM
Strategic Partnership Announcement
- Lucid secured a minimum order of 20,000 vehicles, providing a substantial revenue pipeline.
- A $300 million private placement from Uber's subsidiary provides capital and validates the partnership.
- The strategic partnership with Uber and Nuro positions Lucid at the forefront of the autonomous robotaxi market.
Capital raise
17 July 2025 8:38 AM
Strategic Partnership Announcement
- Lucid and SMB Holding Corporation (a subsidiary of Uber) entered into a Subscription Agreement for a private placement.
- SMB Holding Corporation agreed to purchase Lucid Class A common stock equal to $300 million in cash.
- The purchase price per share is the arithmetic average of the daily volume-weighted average price of Lucid's common stock over 30 consecutive trading days ending prior to the VPA execution.
- The private placement is expected to close in Q3 2025, subject to regulatory approvals and customary closing conditions.
- Proceeds will fund non-recurring engineering costs for the Lucid Gravity Plus vehicles and general corporate purposes.
- SMB Holding Corporation may not transfer the shares for 18 months after closing.
Capital raise
6 June 2025 4:07 PM
Annual Meeting Results
- The Amended and Restated 2021 Stock Incentive Plan was approved, increasing the number of shares of Class A common stock available for issuance by 184,000,000 shares. While primarily for compensation, this represents a potential future issuance of equity that could dilute existing shareholders.
Worse than expected
6 May 2025 4:09 PM
Quarterly Report
- The company's net loss, while improved year-over-year, still indicates that the company is not profitable.
- The company's gross margin is still negative, indicating that the company is selling vehicles at a loss.
Worse than expected
6 May 2025 4:08 PM
Earnings Release
- The company reported a GAAP net loss per share of $(0.24) for Q1 2025.
Capital raise
10 April 2025 9:54 PM
Beneficial Ownership Update
- Lucid Group, Inc. priced an offering of $1,100,000,000 aggregate principal amount of 5.00% convertible senior notes due 2030.
- The settlement of the issuance of these notes occurred on April 8, 2025.
- Ayar Third Investment Company entered into a privately negotiated prepaid forward share purchase transaction for $430,000,000.80 in connection with the notes offering, which is intended to facilitate hedging by investors in the notes.
Capital raise
8 April 2025 8:05 PM
Pricing Announcement
- Lucid Group completed a private offering of $1.1 billion in 5.00% Convertible Senior Notes due 2030.
- The notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
- The initial purchasers had an option to purchase an additional $100 million in notes, which they exercised in full.
- Ayar Third Investment Company entered into a prepaid forward transaction to purchase approximately $430.0 million of Lucid's common stock.
Capital raise
2 April 2025 4:22 PM
Capital Raise Announcement
- Lucid is commencing a private offering of $1,000,000,000 aggregate principal amount of its Convertible Senior Notes due 2030.
- The initial purchasers of the notes will have an option to purchase up to an additional $100,000,000 aggregate principal amount of the notes.
- The notes will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act.
Capital raise
25 February 2025 4:12 PM
Annual Results
- The company will require additional capital to support business growth, and this capital might not be available on commercially reasonable terms, or at all.
- The company is pursuing additional financing through equity, equity-linked, or debt financing in the future.
Delay expected
25 February 2025 4:12 PM
Annual Results
- The Midsize platform is currently in development, and is scheduled for start of production in late 2026.
Worse than expected
25 February 2025 4:12 PM
Annual Results
- The company reported a net loss of $2.7 billion for the year ended December 31, 2024.
- The company expects to continue to incur substantial losses and increasing expenses in the foreseeable future.
Worse than expected
25 February 2025 4:09 PM
Earnings Release
- Lucid reported a GAAP net loss per share of $(1.25) for the full year 2024, indicating continued losses despite increased production and deliveries.
Capital raise
7 November 2024 4:10 PM
Quarterly Report
- Lucid completed a public offering and private placement in October 2024, raising approximately $1.7 billion in gross proceeds.
- The company issued 100,000 shares of Series A Redeemable Convertible Preferred Stock to Ayar for $1.0 billion in March 2024.
- The company issued 75,000 shares of Series B Redeemable Convertible Preferred Stock to Ayar for $750 million in August 2024.
Worse than expected
7 November 2024 4:10 PM
Quarterly Report
- The company's net loss of $992.5 million in Q3 2024 and $2.3 billion for the nine months ended September 30, 2024, is worse than expected, despite a 45% increase in revenue.
Worse than expected
7 November 2024 4:07 PM
Quarterly Report
- The company reported a significant net loss, indicating that it is not yet profitable.
- The cost of revenue is still significantly higher than the revenue, indicating that the company is not yet efficient in its production.
Capital raise
7 November 2024 4:07 PM
Quarterly Report
- Lucid completed a capital raise of approximately $1.75 billion in October 2024.
- The capital raise is intended to extend the company's financial runway well into 2026.
- The Public Investment Fund and other institutional investors participated in the capital raise.
Capital raise
4 November 2024 6:00 AM
SEC Form 4
- Lucid Group completed an underwritten public offering of 262,446,931 shares of its Class A common stock for aggregate gross proceeds of approximately $680 million.
- Ayar Third Investment Company purchased 374,717,927 shares of Issuer Class A common stock in a private placement for an aggregate purchase price of approximately $971 million.
- Ayar purchased from the Issuer an additional 21,470,459 shares of Common Stock for aggregate purchase price of approximately $56 million in a private placement.
Capital raise
18 October 2024 6:09 AM
Capital Raise Announcement
- Lucid Group is raising approximately $1.65 billion through a combination of a public offering and a private placement.
- The private placement with Ayar Third Investment Company will generate approximately $971 million.
- The public offering is expected to generate approximately $680 million.
- Ayar will purchase additional shares to maintain its ownership percentage.
Capital raise
16 October 2024 4:42 PM
Capital Raise Announcement and Preliminary Results
- Lucid is conducting a public offering of 262,446,931 shares of its common stock.
- Ayar Third Investment Company intends to purchase 374,717,927 shares in a private placement concurrently with the public offering.
- The underwriter has a 30-day option to purchase up to 39,367,040 additional shares.
- Ayar intends to purchase additional shares if the underwriter exercises its option to maintain its ownership stake.
Worse than expected
16 October 2024 4:42 PM
Capital Raise Announcement and Preliminary Results
- The estimated loss from operations of $765 million to $790 million is significant and indicates that the company is not yet profitable.
Better than expected
10 September 2024 9:05 AM
Technology and Manufacturing Day Presentation
- Lucid has already delivered more cars in 2024 than in all of 2023, indicating better than expected production and delivery numbers.
Capital raise
19 August 2024 9:04 AM
Private Placement Announcement
- Lucid Group has raised $750 million through the sale of Series B Convertible Preferred Stock to Ayar Third Investment Company.
- The shares were sold in a private placement.
- The company may need to raise additional capital in the future to fund its operations and growth.
Capital raise
5 August 2024 4:10 PM
Quarterly Report
- Lucid issued 100,000 shares of Series A redeemable convertible preferred stock to Ayar for $1.0 billion in gross proceeds.
- The company entered into a $750 million five-year unsecured delayed draw term loan credit facility with Ayar on August 4, 2024.
- Lucid also entered into a subscription agreement with Ayar on August 4, 2024, for the purchase of 75,000 shares of Series B convertible preferred stock for $750 million.
Worse than expected
5 August 2024 4:10 PM
Quarterly Report
- The company's net loss of $643.4 million for the quarter and $1.324 billion for the six months ended June 30, 2024, is worse than expected.
- The company's accumulated deficit of $11.5 billion as of June 30, 2024, is worse than expected.
Capital raise
5 August 2024 4:08 PM
Quarterly Report
- Lucid announced a commitment of $1.5 billion from an affiliate of the Public Investment Fund (PIF).
- This investment is expected to provide sufficient liquidity into at least the fourth quarter of 2025.
Worse than expected
5 August 2024 4:08 PM
Quarterly Report
- The company's net loss of $790.251 million and negative free cash flow of $741.302 million indicate worse than expected financial performance.
Capital raise
5 August 2024 4:07 PM
Capital Raise Announcement
- Lucid Group has secured $750 million through a private placement of Series B Convertible Preferred Stock.
- The company has also entered into a $750 million term loan agreement with Ayar Third Investment Company.
Capital raise
6 June 2024 4:10 PM
Annual Meeting Results
- The approval of the increase in shares available for issuance under the stock incentive plan could be used for future capital raising activities.
Worse than expected
24 May 2024 6:58 AM
Restructuring Announcement
- The company is reducing its workforce and incurring significant restructuring charges, which is generally viewed negatively by investors.
Worse than expected
6 May 2024 4:14 PM
Quarterly Report
- Despite increased revenue, the company's net loss remains substantial, indicating that it is not yet on a path to profitability.
Capital raise
6 May 2024 4:14 PM
Quarterly Report
- Lucid secured a $1 billion investment through the issuance of Redeemable Convertible Preferred Stock to Ayar Third Investment Company.
- The company may need to raise additional funds through equity, equity-linked or debt financings in the future.
Worse than expected
6 May 2024 4:06 PM
Quarterly Report
- The company reported a significant net loss of $680.859 million, which is worse than expected.
- The cost of revenue was significantly higher than the revenue generated, indicating challenges in achieving profitability.
Capital raise
6 May 2024 4:06 PM
Quarterly Report
- Lucid successfully raised $1.0 billion through a private placement to an affiliate of the Public Investment Fund (PIF).
Capital raise
25 April 2024 6:06 AM
Proxy Statement
- Ayar agreed to purchase 100,000 shares of our Series A Convertible Preferred Stock for an aggregate purchase price of $1,000,000,000 in a private placement.
- On March, 29, 2024, we issued the shares of Convertible Preferred Stock pursuant to the March 2024 Subscription Agreement and received aggregate proceeds of $1,000,000,000.
Capital raise
29 March 2024 5:08 PM
8-K Filing
- Lucid Group has raised $1 billion through the sale of Series A Convertible Preferred Stock to Ayar Third Investment Company.
- The capital raise is a private placement, not a public offering.
Capital raise
25 March 2024 8:07 AM
Private Placement Announcement
- Lucid Group is raising $1 billion through a private placement of Series A Convertible Preferred Stock.
- The investor is Ayar Third Investment Company, an affiliate of Saudi Arabia's Public Investment Fund.
- The preferred stock is convertible into common stock, potentially diluting existing shareholders.
- The capital raise is expected to close within 10 business days.
Capital raise
27 February 2024 4:09 PM
Annual Results
- The document mentions that Lucid will require incremental investment to meet AML's demand beyond the committed supply, and AML will decide whether to fund such investment.
- The document also mentions that Lucid may be eligible for a loan pursuant to the Advanced Technology Vehicles Manufacturing Loan Program administered by the U.S. Department of Energy.
Worse than expected
27 February 2024 4:09 PM
Annual Results
- The company's net loss of $2.8 billion was worse than expected, indicating ongoing financial challenges.
- The company's revenue decreased slightly in 2023 compared to 2022, which was worse than expected.
- The company's cost of revenue increased significantly in 2023, which was worse than expected.
Delay expected
27 February 2024 4:09 PM
Annual Results
- The document mentions delays in the acceptance of the Project under the Integration Agreement, which may impact timelines set out in the Supply Agreement.
Worse than expected
21 February 2024 4:07 PM
Quarterly Report
- Lucid's net loss of $2.83 billion for the year is significantly worse than the previous year's loss of $1.3 billion.
- The company's negative free cash flow of $3.4 billion for the year is also a significant concern.
- The cost of revenue is significantly higher than the revenue generated, indicating a lack of profitability.
Capital raise
21 February 2024 4:07 PM
Quarterly Report
- The document mentions that Lucid is reliant on future capital raises and funding strategies.
- The company's negative free cash flow and significant losses suggest that additional capital will be needed to fund operations.
Delay expected
15 February 2024 5:17 PM
Current Report
- The 2024 Annual Meeting is delayed by more than 30 days after the anniversary of the 2023 meeting.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.