Lucid Group Secures $1.5 Billion in Funding from Saudi Shareholder
In a major financial move, US automaker Lucid Group has just clinched a whopping $1.5 billion in new funding from its majority shareholder, Ayar Third Investment Co., an affiliate of Saudi Arabia’s Public Investment Fund.
Details of the Deal
The agreement includes $750 million in convertible preferred stock through a private placement, as well as a $750 million unsecured delayed draw term loan facility, subject to specific terms and conditions, as outlined in a recent statement.
PIF’s Vision for Global Impact
This strategic move aligns perfectly with PIF’s vision to become a global investment powerhouse and the most influential investor worldwide, paving the way for new sectors and opportunities to shape the future global economy while driving Saudi Arabia’s economic transformation.
Lucid’s Mission Towards Sustainability
Likewise, this partnership resonates with Lucid’s core mission to accelerate the global transition towards sustainable transportation and energy by developing the most cutting-edge electric vehicles on the market.
Financial Outlook and Expansion Plans
According to Lucid’s Interim Chief Financial Officer and Principal Accounting Officer Gagan Dhingra, the additional $1.5 billion commitment is expected to provide ample liquidity through at least the fourth quarter of 2025.
The company intends to utilize the funds raised for general corporate purposes, including potential investments and meeting working capital needs.
Lucid also shared its financial results for the second quarter, reporting a revenue of $200.6 million and deliveries of 2,394 vehicles during this period. The company aims to produce around 9,000 vehicles by 2024.
Positive Momentum and Future Prospects
CEO and Chief Technology Officer Peter Rawlinson expressed optimism about Lucid’s sales performance, cost optimization efforts, and the upcoming Lucid Gravity launch, setting a strong foundation for the remainder of the year.
Rawlinson highlighted the technological advancements of Lucid, showcasing a landmark efficiency of 5.0 miles per kilowatt hour, surpassing initial expectations and solidifying the company’s position as a technology leader.
Global Expansion and Manufacturing
In a bold move, Lucid opened its first international plant in Saudi Arabia in September 2023, with an initial capacity of producing 5,000 EVs annually.