Lucid Group, a U.S. electric vehicle manufacturer, has secured $1.5 billion in new funding from its majority shareholder, Ayar Third Investment Co., an affiliate of Saudi Arabia’s Public Investment Fund (PIF). The funding comprises $750 million in convertible preferred stock through a private placement and a $750 million unsecured delayed draw term loan facility, subject to specific conditions.
This investment aligns with PIF’s strategy to position itself as a global investment leader, driving economic transformation in Saudi Arabia and creating new opportunities in the global economy. It also supports Lucid’s mission to accelerate the transition to sustainable transportation by producing cutting-edge electric vehicles.
Gagan Dhingra, Lucid’s Interim Chief Financial Officer and Principal Accounting Officer, stated that the $1.5 billion commitment from PIF is expected to provide sufficient liquidity for the company through at least the fourth quarter of 2025. The funds will be used for general corporate purposes, including potential investments and meeting working capital needs.
Lucid also reported its financial results for the second quarter, ending June 30, 2023, with revenue of $200.6 million from the delivery of 2,394 vehicles. The company expects to produce approximately 9,000 vehicles in 2024 and ended the second quarter with $4.28 billion in total liquidity.
Dhingra noted that the company’s financial performance in Q2 reflects positive momentum from increased sales of the Lucid Air and cost reduction efforts, contributing to improved gross margins. CEO and CTO Peter Rawlinson expressed optimism about the company’s market share growth and cost optimization initiatives, highlighting the successful launch of Lucid Gravity as a key driver for the year ahead. Rawlinson also emphasized the technological leadership of Lucid, citing the achievement of 5.0 miles per kilowatt hour as a significant milestone.
In September 2023, Lucid expanded its global footprint by opening its first manufacturing plant outside the U.S. in Saudi Arabia, with an initial capacity of 5,000 electric vehicles annually.
