Lucid Group Inc (NASDAQ: LCID) saw its shares plummet 5% in after-hours trading on Wednesday, following a series of announcements that appear to have dampened investor enthusiasm. The electric vehicle maker revealed plans for a substantial capital raise and provided its first-quarter delivery numbers and revenue estimates, which seem to have fallen short of market expectations.

The company announced its intention to offer $1 billion in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $100 million. Lucid plans to use the proceeds to repurchase a portion of its outstanding 1.25% convertible senior notes due 2026 and to fund capped call transactions, with any remaining funds allocated for general corporate purposes. This move, while potentially strengthening Lucid's financial position, may have raised concerns about share dilution among investors.

Additionally, Lucid reported its production and delivery figures for the first quarter of 2025. The company delivered 3,109 vehicles, marking a 58% increase compared to the same period last year. Despite this growth, Lucid estimates its Q1 2025 revenue to be between $232 million and $236 million, which appears to have fallen short of some analysts' expectations. The combination of increased deliveries but potentially lower-than-anticipated revenue could be contributing to the stock's after-hours decline as investors reassess the company's near-term growth prospects and profitability.