Achi news desk-
Lucid (LCID) has just received another $1 billion investment from Saudi Public Investment Fund (PIF) affiliate Ayar Third Investment Co. The new funding will help support the launch of Lucid’s first electric SUV, the Gravity, later this year.
Lucid gets $1 billion investment ahead of Gravity launch
“We are extremely pleased to receive this strong, ongoing support from the PIF, as we work to cement our place as the world’s leading EV technology company,” said Lucid CEO Peter Rawlinson.
Lucid announced an agreement with Ayar Third on Monday to buy $1 billion in new convertible preferred stock.
Rawlinson called PIFs a “key differentiator” as it seeks to speed up deliveries, reduce costs, and launch its first electric SUV, the Gravity.
Lucid said it will use the new funds for general purposes, including capital expenditure and working capital.
Saudi Arabia’s PIF already owns a stake of more than 60% in Lucid. Since 2018, PIF has invested about $5.4 billion in the EV manufacturer.
The news comes after Lucid announced that it expects to build around 9,000 vehicles this year, up only slightly from the 8,428 EVs produced last year.
Lucid’s 2023 deliveries fell well short of its initial goal of 10,000 to 14,000, with just 8,428 electric vehicles delivered last year.
Despite a net loss of $653.8 million, Lucid ended Q4 with over $4.3 billion in cash equivalents and investments. To boost sales, Lucid also reduced prices on the Air 2024 EV.
Lucid hopes its first electric SUV, the Gravity, can help fuel momentum. The Gravity is due to go into production later this year.
Lucid stock is up over 8% following the news, but LCID shares are still down over 60% over the past 12 months.
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