High interest rates, moderate oil prices, range anxiety, geopolitical tensions, and risks affect the global electric vehicle (EV) market. Due to this, demand for EVs has slowed, and the industry has witnessed job layoffs and production costs. 

In combating this, California-based Lucid Motors has shared that Saudi Arabia’s Public Investment Fund (PIF) will invest $1 billion, increasing the fund’s shares by 18%.

The funding comes through the company’s majority stockholder, Ayar Third Investment Co., an affiliate of the PIF. 

The investment will reach via a series of convertible preferred stock, which can be converted into nearly 280 million shares, as mentioned in a filing with the US securities regulator.

The Saudi government has a 60% stake in the company.

Peter Rawlinson, CEO and chief technology officer of Lucid Group, said that the PIF funding will help solidify the automotive group’s place as the world’s leading EV technology company.

He added, “We continue to invest in our technology and vertically integrated manufacturing capabilities for the long term, with PIF’s support as a key differentiator. With their support, we remain focused on accelerating our growth via deliveries, executing key business initiatives with a relentless focus on cost, and launching our game-changing Gravity SUV later this year.”

Lucid expects to produce 9,000 units in 2024, compared with the 8,428 vehicles in 2023. 

In February, the group presented its Q4 2023 results to reassure investors that it had sufficient liquidity until 2025. They similarly predicted $1.5 billion in capital spending in 2024 as the EV company pushes to launch its Gravity SUV line later this year.

By the end of 2023, the company had amassed $4.8 billion in available funds, including $4.3 billion in cash.

In September 2023, Lucid opened its first plant in Saudi Arabia with an initial capacity to produce 5,000 EVs a year, aligning with the kingdom’s pledge to purchase up to 100,000 vehicles from it over ten years.

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