(Reuters) -Lucid Group said on Monday its largest shareholder, Saudi Arabia's Public Investment Fund, will inject $1.5 billion in cash, as the electric vehicle maker looks to add new models to its product line. The EV maker's shares, which closed down 3.
9%, were up about 3% in extended trading. The deal comes just ahead of Lucid's planned production of its much-awaited Gravity SUV later this year and keeps the EV maker sufficiently funded till the fourth quarter of 2025. Ayar Third Investment, an affiliate of PIF, has agreed to buy $750 million worth of convertible preferred stock and provide a similar amount as a credit line.
The company also reported second-quarter revenue above analysts' estimates as price cuts helped drive higher sales of its luxury electric sedans during the April-June period. In February, Lucid cut prices of its flagship Air sedans by up to 10% to reignite sales as consumers increasingly opted for more budget-friendly gasoline-electric hybrid cars in response to prevailing high interest rates. Revenue for the second quarter was $200.
6 million, compared with analysts' estimate of $192.1 million, according to LSEG data. In the same quarter, the company delivered a record 2,394 vehicles, beating market expectations, while market leader Tesla reported a smaller-than-expected decline.
Lucid is gearing up to expand its product line with a more affordable mid-size car expected to roll out in late 2026. The company posted a net loss of $790.3 million in the Jun.