Lucid announced on Monday that its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF), will invest up to $1.5 billion.
This funding aims to support the electric vehicle maker’s production ramp-up for its forthcoming Gravity SUV and ensure sufficient capital through the fourth quarter of 2025.
The investment will be allocated towards tooling for the Gravity SUV and the construction of a new factory in Saudi Arabia, which is expected to have an annual production capacity of 150,000 vehicles. Additionally, the funds will support other strategic investments, according to Lucid CEO Peter Rawlinson.
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Ayar Third Investment, a PIF affiliate, will purchase $750 million in convertible preferred stock and provide an equivalent amount as a credit line. This marks the second investment from the PIF affiliate this year.
Senior equity analyst Andres Sheppard from Cantor Fitzgerald noted that the $1.5 billion investment “helps to solidify the relationship between PIF and Lucid further” and addresses previous investor concerns about potential withdrawal of support.
Sheppard added that the PIF’s total investment in Lucid has now reached approximately $8 billion, with the sovereign wealth fund holding around a 60% stake in the company.
