Lucid Group, an electric vehicle maker, has announced that its largest shareholder, Saudi Arabia’s Public Investment Fund, will be injecting up to $1.5 billion in cash. This funding is aimed at helping Lucid add new models to its product line as it continues to expand its offerings in the electric vehicle market. The deal with the Public Investment Fund comes at a crucial time as Lucid prepares to launch its much-awaited Gravity SUV later this year. The injection of funds will keep the EV maker sufficiently funded until the fourth quarter of 2025.
Lucid Receives $1.5 Billion Cash Injection From Saudi Arabia’s Public Investment Fund
The announcement of the $1.5 billion cash injection from the Public Investment Fund caused Lucid’s shares to jump 12% in extended trading. Ayar Third Investment, an affiliate of PIF, has agreed to purchase $750 million worth of convertible preferred stock and provide a similar amount as a credit line to further support Lucid’s growth and development of new models.
Strong Second-Quarter Performance
In addition to the funding announcement, Lucid also reported second-quarter revenue that exceeded analysts’ estimates. The company’s decision to cut prices of its flagship Air sedans by up to 10% helped boost sales during the April-June period. Lucid reported revenue of $200.6 million for the second quarter, surpassing analysts’ estimate of $192.1 million. The company delivered a record 2,394 vehicles during the same quarter, outperforming market expectations.
Expansion Plans and Targets
Lucid is not only focusing on its existing models but also looking to expand its product line with a more affordable mid-size car expected to launch in late 2026. Despite reporting a wider-than-expected loss of 29 cents per share on an adjusted basis, Lucid remains committed to its production targets. The company aims to produce 9,000 units by the end of the year, with 3,838 vehicles already manufactured in the first half of the year.
Financial Position and Outlook
As of the end of the second quarter, Lucid had cash and cash equivalents of $1.35 billion, slightly down from $1.37 billion at the end of 2023. The injection of $1.5 billion from the Public Investment Fund will provide Lucid with the necessary financial support to continue its growth and expansion plans into the future. With a strong second-quarter performance and ongoing production targets, Lucid is well-positioned in the competitive electric vehicle market.