Lucid Group Inc (NASDAQ: LCID) saw its shares plummet 6.25% in after-hours trading on Wednesday, following a series of announcements that have raised concerns among investors. The electric vehicle maker revealed plans for a $1 billion convertible senior notes offering and provided its first-quarter revenue estimate, both of which seem to have spooked the market.

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. This move, while potentially beneficial for the company's capital structure, has raised concerns about potential share dilution among investors.

Adding to the pressure, Lucid estimated its revenue for the quarter ended March 31, 2025, to be between $232 million and $236 million. While the company reported an increase in vehicle deliveries to 3,109 in Q1, up 58% from the previous year, and produced 2,212 vehicles during the quarter, the revenue forecast appears to have fallen short of market expectations. Despite the growth in production and deliveries, including over 600 additional vehicles in transit to Saudi Arabia for final assembly, investors seem to be focusing on the company's financial outlook and capital raising activities.