Lucid Group, a US electric vehicle (EV) 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). This funding includes $750 million in convertible preferred stock through a private placement and a $750 million unsecured delayed draw term loan facility, contingent on certain conditions.
This investment aligns with PIF’s strategy to become a global investment leader and drive Saudi Arabia’s economic transformation by creating new sectors and opportunities. For Lucid, it supports their mission to accelerate the transition to sustainable transportation by developing advanced electric vehicles. The funding is expected to sustain Lucid’s liquidity through at least the fourth quarter of 2025 and will be used for general corporate purposes, including investments and working capital needs.
Lucid recently reported its financial results for the second quarter, ending June 30, with revenue of $200.6 million from the delivery of 2,394 vehicles. The company anticipates manufacturing approximately 9,000 vehicles in 2024 and ended the second quarter with around $4.28 billion in total liquidity.
The company’s positive Q2 financial performance reflects increased sales of the Lucid Air and the success of cost reduction efforts, contributing to improved gross margins. CEO and CTO Peter Rawlinson expressed optimism about sales momentum, cost optimization benefits, and the upcoming launch of Lucid Gravity, highlighting the financial value and technological advancements of the company.
In September 2023, Lucid expanded its global footprint by opening its first plant outside the US in Saudi Arabia, with an initial annual capacity of 5,000 EVs.
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