Lucid Group Inc. to receive $1 billion cash injection from Saudi’s PIF affiliate

Lucid Group Inc. to receive $1 billion cash injection from Saudi’s PIF affiliate

Lucid Group Inc. is receiving a $1 billion cash injection from its biggest investor, an affiliate of Saudi Arabia’s Public Investment Fund (PIF). The financing comes from Ayar Third Investment Co. in the form of a private placement for convertible preferred stock.

• Company Background: Founded in 2007 by Bernard Tse and Sam Weng, Lucid Group Inc. is a technology and automotive company specializing in the development of next-generation electric vehicle (EV) technologies.

• Utilization of Funds: The funds will be used for capital expenditure and as working capital, providing enhanced financial security for Lucid Motors.

• Market Response: Lucid's stock rose 7% following the announcement, after having dropped 34% earlier in the year. The new investment is seen as a positive development by Morgan Stanley analysts, who noted the reinforcement of commitment from PIF.

• Production Challenges: Despite being one of the few US-based pure-play EV names, Lucid has struggled to scale its output. The company plans to build around 9,000 premium Air sedans in 2024, only slightly higher than the 8,500 built last year.

This incoming injection from Saudi investors, who have invested about $5.4 billion into Lucid since 2018, reflects investor confidence in the Lucid Group Inc.