Lucid Group Announced on Monday that it has entered into an agreement with its majority stockholder, Ayar Third Investment Company (“Ayar”), an affiliate of the Public Investment Fund (“PIF”), to purchase $1.0 billion of newly created series of convertible preferred stock via private placement, subject to customary closing conditions.
Ayer is purchasing about 12% of Lucid’s outstanding Common stock, adding to Saudi Arabia’s existing 60% ownership.
“We are extremely pleased to receive this strong, continued support from the PIF, as we work to solidify our place as the world’s leading EV technology company,” said Peter Rawlinson, CEO and CTO, Lucid Group. “We continue to invest for the long term in both our technology and our vertically integrated manufacturing capabilities, with PIF’s support a key differentiator. With their support, we remain focused upon accelerating our growth via deliveries, executing key business initiatives with relentless focus upon cost, and launching our game-changing Gravity SUV later this year.”
Lucid intends to use the net proceeds from the private placement for general corporate purposes, which may include, among other things, capital expenditures and working capital.
Lucid expects to make 9,000 units in 2024, compared with the 8,428 vehicles it made last year.
The Newark, California-based electric vehicle maker aims to produce its electric Gravity SUV by the end of 2024.
Last year, Lucid opened the first-ever car manufacturing facility in Saudi Arabia, where it assembles its electric sedan, the Lucid Air. The facility has begun semi knocked-down (SKD) assembly and is expected to have an annual capacity of 5,000 cars. The initial operation re-assembles Lucid Air vehicle ‘kits’ that are pre-manufactured at the company’s U.S. AMP-1 Manufacturing Facility in Casa Grande, Arizona. Lucid aims to transition the plant to complete build unit (CBU) production after the middle of the decade, with an additional annual capacity of 150,000 cars.
