Lucid raises new capital from Saudi Arabian investor
The PIF affiliate is called Ayar Third Investment Corporation. It will buy “one billion dollars of newly created series of convertible preferred stock via private placement.” The latter can be converted into about 280 million shares.
The Saudi government has invested in the US carmaker before. In 2022, it ordered up to 100,000 vehicles from Lucid over a ten-year period. It also holds a 60 per cent stake in PIF.
“We are extremely pleased to receive this strong, continued support from the PIF, as we work to solidify our place as the world’s leading EV technology company,” said Peter Rawlinson, CEO and CTO of Lucid Group. “We continue to invest for the long term in both our technology and our vertically integrated manufacturing capabilities, with PIF’s support a key differentiator. With their support, we remain focused upon accelerating our growth via deliveries, executing key business initiatives with relentless focus upon cost, and launching our game-changing Gravity SUV later this year.”
Lucid opened a factory in Saudi Arabia in September last year, where it assembles its electric sedan, the Lucid Air. For now, it has opted for a semi-knocked-down assembly (SKD) concept there. The initial annual capacity of the SKD assembly is initially 5,000 vehicles. From the middle of this decade, Lucid plans to fully manufacture its electric cars at the plant in Saudi Arabia and increase capacity to 155,000 vehicles per year.
Like many EV makers, Lucid faces a slowdown in demand for electric cars. In 2023, Lucid produced 8,428 units. And although more than 6,000 Lucid Air were delivered in 2023, the annual balance sheet only shows a turnover of 595.3 million dollars.
Lucid expects to build 9,000 electric cars this year, so only about 500 units more than in 2023. And that even though the carmaker will expand its portfolio in 2024 to include the Gravity SUV.
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