An affiliate of Saudi Arabia’s Public Investment Fund has agreed to invest as much as $1.5 billion into luxury electric vehicle maker Lucid Group Inc. The investment is a crucial intervention coming at a time when the electric-car maker is working to overcome production hurdles, coping with slowing EV demand, and readying its first sport utility vehicle.
Ayar Third Investment Company will invest in Lucid by purchasing $750 million of convertible preferred stock and providing a $750 million unsecured loan, Lucid has confirmed. Lucid shares traded up as much as 16% before the start of regular trading Tuesday. The EV maker already received $1 billion from Ayar in March.
Lucid intends to use its new cash infusion for general corporate purposes, including capital expenditures and working capital. The money is expected to fund the manufacturer through the fourth quarter of next year. Lucid was listed in the US a few years ago but had trouble replicating the success of market leader Tesla Inc.
The manufacturer currently offers only one vehicle, the Lucid Air sedan, which starts at $69,900. It also plans to launch an SUV, the Lucid Gravity, later this year..