Electric vehicle maker Lucid Group (LCID.O), opens new tab said it anticipates to report a bigger-than-expected loss for the third quarter and announced a public offering of over 262 million shares, sending its shares down 12% in after-market trading on Wednesday.

Additionally, Saudi Arabia's Public Investment Fund, a majority stockholder in Lucid, said it would purchase 374.7 million shares of the company. The fund expects to maintain an ownership of nearly 59% in Lucid.

The latest investment by the sovereign wealth fund underscores the importance of this lifeline for Lucid in the race for survival among struggling EV startups.

The electric carmaker intends to use the proceeds from the offering as well the private placement from PIF to fund its capital expenditure and other corporate finance needs.

PIF had said in August that it would inject up to $1.5 billion in cash through its affiliate, Ayar Third Investment, as Lucid looks to ramp up production of a new SUV.

The Saudi government, which has maintained a nearly 60% stake in Lucid, has invested billions in the company as part of the kingdom's strategy to diversify its economy beyond oil.

Lucid expects to report a loss from operations in the range of $765 million to $790 million for the quarter ended Sept. 30, compared with analysts' average estimate of $751.65 million loss, according to data compiled by LSEG.

The company is scheduled to report its third-quarter results on Nov. 7.

Demand for electric vehicles in the United States has been weakening due to high interest rates and the availability of cheaper hybrid alternatives.

EV firms such as Tesla (TSLA.O), opens new tab, Rivian (RIVN.O), opens new tab and Lucid have slashed their prices and have been offering incentives such as cheaper financing options to woo customers.