US-headquartered recently announced that its largest shareholder – Saudi Arabia’s Public Investment Fund (PIF) will inject $1.5 billion in cash. With this announcement, it has topped Wall Street’s Q2 revenue estimates as the company’s shares jumped nearly 6% in extended trading.
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 deal comes ahead of the planned production of the highly anticipated Gravity SUV later this year and ensures it is sufficiently funded until 2025. With this investment, the company the eyes to add new models to its product line.
Furthermore, this deal further deepens the ties between Lucid and its majority owner. Notably, the latter has already committed to purchase at least 50,000 of its EVs in the coming years. It will also help the company build a brand new factory in Saudi Arabia.
In addition, Lucid is gearing up to expand its product line with a more affordable mid-size car expected to roll out in late 2026. 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. It announced a loss of $643 million in Q2 2024 despite smashing a sales record with its electric luxury sedans.
Notably, the company generated $200 million in revenue with this sale. It reported $1.35 billi.