By Muslim Parrot Reporter
Lucid Motors, the electric automaker, announced on Monday a significant financial agreement, securing a $1 billion funding deal with an affiliate of the Saudi state-owned Public Investment Fund (PIF).
The investment comes from Ayar Third Investment Company, a subsidiary of the sovereign wealth fund, which will purchase $1 billion worth of convertible preferred stock. This stock entitles the investor to approximately 280 million shares, offering flexibility for potential conversion. According to Lucid, the infusion of capital is earmarked for various corporate purposes and capital expenditures.
Following the announcement, Lucid’s shares experienced a notable surge of approximately four percent in trading beyond regular market hours. This development propelled the luxury electric carmaker’s shares by nearly 20 percent. The injection of funds from PIF’s affiliate underscores Lucid’s strategic advantage in the competitive landscape of electric vehicle (EV) startups, signaling a significant boost in its bid for sustainability.
The involvement of the Saudi government, which holds a substantial 60 percent stake in Lucid, underscores the nation’s commitment to diversify its economy away from oil dependence. Saudi Arabia has strategically invested billions in Lucid’s success, aligning with its broader economic diversification agenda.
Of particular significance is Lucid’s establishment of its inaugural car manufacturing facility in Saudi Arabia, inaugurated in September 2023. Serving as Lucid’s second Advanced Manufacturing Plant and its maiden international facility, the plant is poised to produce the company’s innovative electric vehicles primarily for the Saudi market while also catering to international demand through exports.
This latest financial injection from the Saudi PIF affiliate not only bolsters Lucid’s financial standing but also solidifies its position as a frontrunner in the EV industry, showcasing its resilience and potential for sustained growth amidst the evolving landscape of electric mobility.