Lucid's $1 Billion Boost: Saudi Fund Affiliate Invests in EV Maker

Lucid's $1 Billion Boost: Saudi Fund Affiliate Invests in EV Maker

By Staff Writer, 28 March 2024

Luxury electric carmaker Lucid Motors announced on Monday (March 25th) that it is securing $1 billion in funding from a Saudi Arabian Public Investment Fund affiliate.

The news sparked a nearly 20% surge in Lucid's shares during early trading, reflecting investor optimism before the stock settled.

This substantial investment from the sovereign wealth fund highlights Lucid's strategic advantage amidst the challenges faced by numerous electric vehicle (EV) startups.

With the Saudi government holding a significant 60% stake in Lucid, this infusion of capital aligns with the Kingdom's broader economic diversification efforts away from oil.

The investment, facilitated by Ayar Third Investment Company, a PIF affiliate, involves the purchase of $1 billion in convertible preferred stock.

This arrangement allows for the conversion of the preferred stock into approximately 280 million shares, as outlined in regulatory filings with U.S. securities regulators.

Facing sluggish demand and intensified competition, Lucid intends to utilize the funds for various corporate purposes and capital expenditures.

The California-based company has encountered challenges amid a broader slowdown in EV demand growth and a competitive landscape exacerbated by Tesla's pricing strategies.

Despite these obstacles, Lucid's securing of substantial investment underscores its commitment to navigating the evolving EV market and advancing its position within the industry.

Source: CNBC

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