Lucid Group, the electric vehicle (EV) manufacturer, has announced a significant financial boost with up to $1.5 billion in funding from its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF). This investment aims to support the ramp-up of Lucid’s new SUV, the Gravity, scheduled for production later this year.
The announcement caused Lucid’s shares to rise by about 6% in extended trading, despite a 3.9% drop during the regular session. According to CEO Peter Rawlinson, this funding secures the company’s financial stability until the fourth quarter of 2025.
“The $1.5 billion helps to solidify the relationship between PIF and Lucid further,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald. “There was some investor concern out there that should the PIF become frustrated with the company, they wouldn’t provide any additional commitments.”
The funds will be used for several key investments, including the production tooling for the Gravity SUV and the construction of a factory in Saudi Arabia, which will have an annual capacity of 150,000 vehicles. This is part of a broader strategic plan to expand Lucid’s manufacturing capabilities and product line.
Ayar Third Investment, an affiliate of PIF, has agreed to purchase $750 million worth of convertible preferred stock and extend a similar amount as a credit line. This marks the second significant investment from the PIF affiliate this year, bringing the total investment by the sovereign wealth fund to approximately $8 billion. PIF now holds about 60% of Lucid’s shares.
In addition to this funding news, Lucid reported second-quarter revenue that exceeded analysts’ expectations. Revenue reached $200.6 million, surpassing the projected $192.1 million, driven by strategic price cuts on its luxury electric sedans. In February, the company reduced prices of its flagship Air sedans by up to 10% to boost sales amid growing competition from more budget-friendly gasoline-electric hybrid vehicles.
Lucid produced 3,838 vehicles in the year’s first half and remains on track to meet its target of 9,000 units by year-end. The company also delivered 2,394 vehicles in the second quarter, exceeding market expectations. Looking ahead, Lucid is preparing to expand its product range with a more affordable mid-size car expected to launch in late 2026.
Despite these positive developments, Lucid reported an adjusted loss of 29 cents per share for the second quarter, slightly higher than the anticipated loss of 27 cents. The company ended the quarter with $1.35 billion in cash and cash equivalents, a slight decrease from $1.37 billion at the end of 2023. Additionally, Lucid has reduced its capital expenditure forecast for 2024 by $200 million, down from the previous outlook of $1.5 billion.
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