Lucid Group said on Monday its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF), will inject up to $1.5bn in cash, as the electric vehicle maker looks to ramp up production of a new SUV. The EV maker’s shares jumped about 6 per cent in extended trading after closing down 3.
9 per cent in the regular session. 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. Lucid will use the funds for tooling to produce the Gravity SUV and to build its factory in Saudi Arabia, with an annual capacity of 150,000 vehicles per year, among other investments, CEO Peter Rawlinson told Reuters .
Ayar Third Investment has agreed to buy $750m worth of convertible preferred stock and provide a similar amount as a credit line, marking the second investment from the PIF affiliate this year. “The $1.5bn helps to solidify the relationship between PIF and Lucid further.
There was some investor concern out there that should the PIF become frustrated with the company that they wouldn’t provide any additional commitments,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald. The PIF’s investment h as grown t o a total of about $8bn, he added. The sovereign wealth fund has a stake of about 60 per cent in the company.
The company also reported second-quarter revenue above analysts’ estimates as price cuts helped drive sales of its luxury e.