Lucid Group, the electric vehicle manufacturer, recently received a cash injection of up to $1.5 billion from the Saudi Arabian Public Investment Fund (PIF), its largest shareholder. This deal will provide Lucid with sufficient funding until the fourth quarter of 2025 and comes as the company plans to expand its lineup beyond the Air sedan. The PIF had previously invested $1 billion in Lucid in 2018, which helped to launch the Air into production.
Lucid Gravity:
Aside from the cash infusion, Lucid also reported second-quarter revenue that exceeded analysts’ expectations. This was attributed to price cuts that increased sales of the Air during the quarter. The company slashed prices by up to 10% earlier in the year, making the base Air Pure more competitive with the Tesla Model S. The additional funding is expected to support the production of the Gravity SUV, Lucid’s second model that was unveiled at the 2023 Los Angeles auto show and is set to begin production later this year.
Project Midsize:
In January, Lucid teased a smaller electric SUV known as “Project Midsize,” which is expected to be similar in size to the Tesla Model Y. CEO Peter Rawlinson announced that engineering prototypes of the new model have already been built, with a targeted launch window in 2026. This announcement coincided with the opening of the second stage of manufacturing at Lucid’s Casa Grande, Arizona factory, which will significantly increase production capacity. The facility will support the ramp-up of the Gravity SUV and expanded production of the Air until the third model arrives.
Conclusion:
The recent cash injection from the Saudi Arabian PIF will enable Lucid Group to continue its expansion and development of new electric vehicle models. With plans for the Gravity SUV, Project Midsize, and ongoing production of the Air sedan, Lucid is positioning itself as a key player in the electric vehicle market. The company’s successful revenue performance in the second quarter of this year indicates a strong demand for its products, and the future launch of the Project Midsize electric SUV further solidifies Lucid’s commitment to innovation and sustainability in the automotive industry.