Lucid and Nikola move to raise additional funds as rising costs squeeze EV startups

Electric vehicle makers Lucid Group and Nikola are moving to raise additional funds, as both companies aim to boost production amid sharply rising battery costs and new federal regulations that limit incentives for EV buyers.

Nikola said in a regulatory filing Tuesday that it plans to issue up to $400 million worth of new stock in an “at-the-market” offering, meaning that the shares will be sold at prevailing market prices.

The Arizona-based maker of electric heavy trucks told investors during its second-quarter earnings call that it expected to raise additional funds as it works to ramp up production of its Tre electric semitrucks and moves ahead with its $144 million acquisition of battery pack supplier Romeo Power.

Nikola had $529 million in cash remaining as of the end of June, and an additional $312 million available via an existing equity line from Tumim Stone Capital.

Separately, Lucid Group late on Monday filed a “shelf registration” to issue up to $8 billion in new stock over the next three years. A shelf registration gives the company the right to issue the stock as needed.

Lucid said in a statement that its shelf registration is intended to “provide greater flexibility” to raise additional money in the future, and that it has no immediate plans to sell any new stock.

Lucid had $4.6 billion in cash on hand as of the end of the second quarter, enough to fund its operations and capital expenses into next year, it said earlier this month.