April 14 (Reuters) – Lucid on Tuesday named Silvio Napoli as its next chief executive officer, as the company looks to ramp up production and sales of its electric vehicles in a highly competitive EV environment. Shares of the company were up over 4% in premarket trading. Napoli was till recently the chairman and CEO […]
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EV maker Lucid taps former Schindler chief Silvio Napoli as CEO
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April 14 (Reuters) – Lucid on Tuesday named Silvio Napoli as its next chief executive officer, as the company looks to ramp up production and sales of its electric vehicles in a highly competitive EV environment.
Shares of the company were up over 4% in premarket trading.
Napoli was till recently the chairman and CEO of Schindler, where he was widely credited with modernizing the elevator and escalator maker’s global supply chain and overseeing its aggressive expansion into Asian markets.
He will take charge from interim CEO Marc Winterhoff, who will continue as chief operating officer.
Napoli’s appointment comes at a crucial time for Lucid as it works to expand its vehicle lineup into lower-cost models and robotaxis in partnership with Uber and Nuro.
Lucid has recently faced persistent supply chain disruptions, including issues with a supplier quality issue with second-row seats that hampered deliveries in the first quarter.
The autonomous vehicle industry represents a new avenue for automakers to bolster operations and tap into a market that analysts say will grow exponentially in the future.
The company has also been working to reduce costs, strengthen its balance sheet and increase profitability by optimizing supply chains and reducing workforce.
LUCID SECURES NEW CAPITAL
Separately on Tuesday, Lucid announced it is raising over $1 billion through stock offerings and investments from shareholders, as the EV maker looks to stay afloat in an industry that requires heavy amounts of cash burn.
Lucid expanded its robotaxi partnership with Uber. The ride-hailing firm will increase its commitment to at least 35,000 Lucid vehicles and invest an additional $200 million in Lucid.
Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund, Lucid’s largest shareholder, committed a new investment of $550 million of convertible preferred stock.
At the same time, Lucid expanded its credit line to $2.5 billion.
Through a common stock offering, Lucid will secure over $291 million in proceeds from underwriter BofA.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)