The major electric vehicle manufacturer Lucid Group was given a significant financial fillip as its biggest shareholder, Saudi Arabia’s Public Investment Fund, announced the potential investment of up to USD 1.5 billion into the firm in a deal. This comes when Lucid is gearing up for the production boost of the highly anticipated Gravity SUV later this year. This funding will be essential for carrying the company through the fourth quarter of 2025.
PC: ET Auto
The financial arrangement calls for the purchase of $750 million in convertible preferred stock by Ayar Third Investment, an affiliate of PIF, with another equal amount to be provided as a credit line. With this huge investment, basically, it means that Saudi investors do have some belief in Lucid with regards to product diversification and its competitive advantage in the upcoming EV market.
Shares of Lucid closed 3.9% down but surged 12% in extended trading following its announcement. This upbeat market response indicates the optimism of investors about Lucid’s strategic steps and its financial health.
Lucid has manufactured 3,838 vehicles in the first half of the year and remains well on its way to meet its full-year production target of 9,000 vehicles by the end of the year. Beat market expectations in its second quarter with revenue at USD 200.6 million, whereas analysts had expected USD 192.1 million. Strategic price cuts of up to 10% on the flagship Air sedans helped drive revenue growth.
Despite reporting record deliveries of 2,394 vehicles in the second quarter, Lucid posted an adjusted loss of 29 cents per share that was wider than expected versus the consensus estimate of 27 cents. The company exited the second quarter with $1.35 billion in cash and cash equivalents versus $1.37 billion at the end of 2023.
Looking ahead, in late 2026, Lucid will introduce a more accessible, mid-size car offering that will provide additional reach and growth opportunities.
The PIF fund infusion not only allows Lucid to raise much-needed capital to further production plans but also deepens the strategic relationship between the EV maker and Saudi investors. With an overhauled financial position and an exciting set of product pipelines in its arsenal, Lucid is well-poised in a good position to succeed in the future amid the rapidly changing global automobile industry toward sustainable mobility solutions.
