Lucid has received a significant boost to its financial standing with a $1 billion investment from Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund (PIF). The infusion of capital comes at a crucial time for Lucid, which has been navigating through a challenging phase with weak demand for its luxury electric vehicles (EVs).
The investment was announced by Lucid in a press release on Monday, and will come in the form of an agreement by Ayar to purchase $1.0 billion of newly created series of convertible preferred stock through private placement.
Lucid says the investment will allow them to pursue various corporate objectives, including capital expenditures and bolstering its working capital, giving it enough money to continue operating into 2025.
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. 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.
Peter Rawlinson, CEO and CTO, Lucid Group
The PIF is the majority owner of Lucid Group, holding a more than 62% stake in the EV automaker.
Lucid (LCID) stock surged 20% on the announcement, but has since settled and is trading up 7% on the day at the time of writing.
After a difficult 2023, the company says it will only slightly increase its production in 2024 to 9,000 units in 2024, up from 8,428 vehicles last year. At the end of 2023 Lucid reported it has $4.8 billion in available funds, including $4.3 billion in cash.
Lucid is currently developing their next EV after the Air, a three-row electric SUV by the name of Gravity. Lucid is targeting the Gravity to start under US$80,000, with production is set to begin in late 2024, for an early 2025 launch.
