• Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line
Saudi Business News
Friday, May 9
06:23
25 °c
Riyadh
No Result
View All Result
Saudi Business News
  • Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line
No Result
View All Result
Saudi Business News
No Result
View All Result

HomeBusinessLucid Gains Financial Boost with $1 Billion Saudi Investment

Lucid Gains Financial Boost with $1 Billion Saudi Investment

Saudi PIF Affiliate Bolsters Lucid Amid EV Market Challenges

March 25, 2024
in Business, PIF
Reading Time: 2 mins read
152
SHARES
1.9k
VIEWS
Share on FacebookShare on XShare on LinkedInShare on Telegram

Luxury electric vehicle manufacturer Lucid Motors announced a substantial capital infusion of $1 billion from a Saudi Arabian Public Investment Fund (PIF) affiliate, leading to an approximately 8% surge in the company’s stock value.

This significant backing from the sovereign wealth fund marks a pivotal edge for Lucid in the competitive landscape of electric vehicle (EV) startups seeking financial stability.

RelatedPosts

Private Aviation Expansion in Saudi Arabia: New Charter Rules

Saudi Arabia Startup Expansion: Key Steps for Success

Esports World Cup: Saudi Arabia’s $70M Gaming Investment

With a commanding 60% ownership, the Saudi government has funneled several billion dollars into Lucid’s endeavors, aligning with its economic diversification efforts away from petroleum reliance.

The investment is structured through the purchase of convertible preferred stock by Ayar Third Investment Company, a PIF entity. This arrangement could translate into nearly 280 million ordinary shares, based on details from a U.S. securities regulatory filing.

Despite grappling with tepid demand, the California-headquartered firm aims to allocate the fresh capital towards a variety of corporate needs including capital expenditure.

Lucid, steered by a former leader from Tesla, has not been immune to the industry’s broader challenges, such as slower demand growth and aggressive pricing strategies initiated by Tesla.

Despite these hurdles, Lucid anticipates a production increase to 9,000 vehicles in 2024, a slight uptick from the 8,428 units produced in the preceding year.

The Air luxury sedan, Lucid’s flagship model, competes in the high-end EV market against Tesla’s Model S and offerings from established luxury automakers like Mercedes-Benz, BMW, Audi, and Porsche.

Analysts, including Andres Sheppard from Cantor Fitzgerald, believe this announcement will likely secure Lucid’s financial longevity. Sheppard forecasts the company’s production to reach 9,500 vehicles in the current year and 20,000 units by 2025.

In a prior financial briefing, Lucid projected that its existing liquidity would sustain operations well into 2025, with an anticipated capital expenditure of $1.5 billion in 2024. This forecast aligns with the company’s strategy to debut its Gravity SUV lineup later this year.

At the close of 2023, Lucid reported $4.8 billion in available resources, which includes $4.3 billion in cash reserves.

Tags: Capital Raiseelectric vehiclesLucid MotorsPIFSaudi Investment
Share61Tweet38Share11Share

© 2025 Copyright, Saudi Business News

No Result
View All Result
  • Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line

© 2025 Copyright, Saudi Business News

Go to mobile version