Lucid Group, the electric vehicle manufacturer, announced a significant boost to its financial standing with a $1.5 billion investment from its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF).
The funding will be used to accelerate production of the highly anticipated Gravity SUV and support the construction of a new Saudi Arabian factory with an annual capacity of 150,000 vehicles.
The investment comes in the form of a $750 million purchase of convertible preferred stock and a $750 million credit line from Ayar Third Investment Company, an affiliate of PIF. This marks the second major investment from PIF this year, bringing its total stake in Lucid to approximately 60% and its overall investment to around $8 billion.
With this financial backing, Lucid aims to solidify its position in the competitive EV market.
The company reported Q2 revenue of $200.6 million and expects to deliver approximately 9,000 vehicles in 2024. Despite challenges, Lucid ended the quarter with a strong liquidity position of $4.28 billion.
The news of the investment sent Lucid’s stock price soaring by 6% in after-hours trading, a positive indicator of investor confidence in the company’s future.
“I’m very encouraged by our sales and market share momentum we’re experiencing, the benefits we’re realizing from our cost optimization programs, and the excitement that’s been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year,” said Peter Rawlinson, CEO and CTO of Lucid.
“The tremendous financial value potential our technology enables is now becoming better recognized, and our achievement of a landmark efficiency of 5.0 miles per kilowatt hour, ahead of where we anticipated, is a further proof point of our leadership as a technology company.”
“Our Q2 financial performance reflects the positive momentum of increased sales of Lucid Air and the results of our cost reduction efforts, which contribute to the journey toward improving gross margin,” said Gagan Dhingra, Interim Chief Financial Officer and Principal Accounting Officer at Lucid. “We ended the second quarter with $4.28 billion in total liquidity and remain committed to maintaining a healthy balance sheet to execute on our strategic vision. The additional $1.5 billion commitment by an affiliate of the PIF is expected to provide sufficient liquidity into at least the fourth quarter of 2025.”
