Morgan Stanley Applauds Lucid’s Audacity, Raising Another $2 Billion Less Than 6 Months After IPO

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Why Lucid Stock Bounced Back Today

In most investors’ opinion, Lucid Group’s (NASDAQ: LCID) decision to sell $1.75 billion worth of senior convertible notes yesterday — and perhaps more than $2 billion worth — was unqualifiedly horrible news. One notable fan of Lucid’s cash grab is investment bank Morgan Stanley. In a note last night (of which we were kindly provided a copy by our friends at TipRanks.com), the investment banker argues that Lucid made a “wise decision” to raise cash while its stock is popular, helping the near-revenue-less company secure a 1.25% interest rate on its debt (and later, a good conversion ratio into its richly priced shares, should it choose to convert the debt into shares).