(Reuters) -Cash-strapped electric luxury sedan maker Lucid said on Thursday a combined public offering and private placement of roughly 637 million shares would likely fetch it $1.67 billion. The stock sale as well as its latest warning of a bigger-than-expected loss for the third quarter sent Lucid shares down as much as 16.

California-based Lucid Group's shares price dropped by 10% during after-hours trading Wednesday after announcing larger-than-expected operational losses during the third quarter.

Lucid Group announced it would be selling approximately 637 million shares in a public offering and to its largest shareholder.

US carmaker Lucid Motors is looking to offer 262 million shares of common stock, hoping to raise up to 860 million dollars in capital. This comes as the company's losses in the third quarter may be larger than expected.

Lucid expects to report a loss from operations in the range of USD 765 million to USD 790 million for the quarter ended Sept. 30, compared with analysts' estimates of USD 751.7 million, according to data compiled by LSEG.

Cash-strapped electric luxury sedan maker Lucid said on Thursday a combined public offering and private placement of roughly 637 million shares would likely fetch it $1.67 billion.

Lucid shares dropped after the electric-vehicle maker said it would shore up its finances by issuing new stock and warned of a larger-than-expected loss. The carmaker plans to sell more than 260 million shares in a public offering,

Shares of Lucid Group Inc. fall 12% in the extended session Wednesday after the EV maker called for larger-than-expected operational losses and quarterly revenue that would be slightly ahead of forecast.

The company plans a substantial public stocks offering and projects a wider-than-expected loss for the third quarter.

Lucid Motors announced another capital raise via a share sale late Wednesday night as the California-based EV maker seeks further runway ahead of the release of its upcoming EV SUV.