- Lucid Group Inc. will receive up to $1.5 billion from an affiliate of Saudi Arabia’s Public Investment Fund.
- Lucid said it intends to use its new cash infusion for general corporate purposes, including capital expenditures and working capital.
Lucid Group Inc. will receive as much as $1.5 billion from an affiliate of Saudi Arabia’s Public Investment Fund as the electric car maker prepares to launch its first sport utility vehicle.
Lucid said in a statement that Ayar Third Investment Company has agreed to make the investments by purchasing $750 million of convertible preferred stock and providing a $750 million unsecured loan. The fresh funding comes as the carmaker works to overcome production hurdles and cope with slowing EV demand.
Lucid shares traded up as much as 16 per cent before the start of regular trading on August 6. The stock was down about 29 per cent for the year through August 5 close.
The Newark, California-based EV maker already received $1 billion from Ayar in March. A few weeks later, Lucid announced it would cut about 6 per cent of its workforce by the end of the third quarter. The news followed a tough 2023 in which the company struggled to boost output, cut staff and saw a shakeup at the top of its management ranks.
Lucid noted it intends to use its new cash infusion for general corporate purposes, including capital expenditures and working capital. The money will fund the manufacturer through the fourth quarter of next year.
The company also reported second-quarter revenue of $200.6 million, beating the average Wall Street estimate of $185.8 million. However, it lost 29 cents a share on an adjusted basis during the period, more than the 27 cents-a-share loss analysts anticipated.
Lucid was among a handful of EV makers listed in the US in the last few years, but it has had trouble replicating the success of market leader Tesla Inc. The manufacturer currently offers only one vehicle, the Lucid Air sedan, which costs $69,900. It also plans to launch the Lucid Gravity SUV later this year.
“The new round of funding sees us right through a key phase of not just the launch of Gravity but the ramp up,” Chief Executive Officer Peter Rawlinson said in an interview.