Shares of Lucid Group dropped 20% in premarket trading following an announcement of a public offering of over 260 million shares. The electric vehicle startup’s move comes alongside a deal with its largest shareholder, Ayar Third Investment Co, to purchase over 370 million shares in a private placement. The public offering will raise additional capital, while Ayar is expected to maintain its nearly 58% ownership. Lucid’s stock has fallen 22% this year.