Lucid Group announced a significant financial boost today, revealing an agreement with Ayar Third Investment Company, an affiliate of the Public Investment Fund (PIF), for a $1 billion investment.
This investment will come in the form of newly created series of convertible preferred stock through a private placement, contingent on customary closing conditions.
The infusion of capital arrives at a crucial time for Lucid, a company recognized for its ambitious endeavors in the electric vehicle (EV) sector. Amidst a challenging financial landscape, this move is seen as a pivotal step to ensure Lucid’s operational continuity and to support its strategic initiatives.
“We are extremely pleased to receive this strong, continued support from the PIF, as we work to solidify our place as the world’s leading EV technology company,” said Peter Rawlinson, CEO and CTO, Lucid Group. “We continue to invest for the long term in both our technology and our vertically integrated manufacturing capabilities, with PIF’s support a key differentiator. With their support, we remain focused upon accelerating our growth via deliveries, executing key business initiatives with relentless focus upon cost, and launching our game-changing Gravity SUV later this year.”
The funds from this strategic investment are earmarked for general corporate purposes, including capital expenditures and working capital, indicating Lucid’s intention to solidify its financial footing and sustain its growth trajectory.
Lucid continues to try to increase sales of its luxury Air EV sedan, which is quite expensive. This investment will allow Lucid to keep producing cars, which it still is selling at a major loss per vehicle. The company missed its sales and revenue targets by 90% in 2023 and it’s not looking good.
