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EV maker Lucid secures $1bn funding from PIF affiliate

Lucid's factory in Saudi Arabia's King Abdullah Economic City will have the capacity to assemble 5,000 vehicles per annum in the first phase Lucid
Lucid's factory in Saudi Arabia's King Abdullah Economic City.

US electric vehicle manufacturer Lucid will raise $1 billion in capital from an affiliate of Saudi Arabia’s Public Investment Fund.

Ayar Third Investment Company will buy $1 billion in convertible preferred stock via private placement, the carmaker said in a statement.

“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 of Lucid Group.

Lucid is investing for the long term in both technology and to obtain greater control of its supply chain, and PIF’s backing is a key differentiator, he added.

“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 California-based company plans to use the new funds for general corporate purposes, such as capital expenditures and working capital.

According to its filing with the US securities regulator, the EV maker will be able to convert the convertible preferred stock into 278 million shares.

PIF owns 60.2 percent of Lucid, with its investments reaching $5.4 billion since 2018. In May 2023, Lucid announced its latest capital raise of $3 billion, including a $1.8 billion investment by a PIF affiliate.

The EV maker opened its first car manufacturing facility last September in King Abdullah Economic City, which will have the capacity to assemble 5,000 vehicles per annum in the first phase.

The complete manufacturing facility, including the assembly facility, is expected to have capacity to produce 155,000 EVs per annum.

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