Last Updated on March 26, 2024 by Safiya K
- Lucid Motors secures a $1 billion investment from Saudi Arabia’s Public Investment Fund affiliate, highlighting the Kingdom’s continued support for the company’s growth in the electric vehicle market.
- The investment increases Saudi Arabia’s ownership stake in Lucid Motors to approximately 60%, signalling a deepening partnership between the two entities.
- Despite facing challenges with sales of its high-priced Air sedan, Lucid Motors plans to expand its product lineup by introducing the electric Gravity SUV and aims to address market demands through strategic pricing adjustments.
Lucid Motors has secured an additional $1 billion investment from its primary financial supporter, Saudi Arabia, aiming to offset the substantial costs associated with producing and marketing its high-end electric sedan. According to a regulatory filing released on Monday, Ayar Third Investment, a Saudi Arabian Public Investment Fund affiliate, has agreed to acquire $1 billion worth of Lucid’s stock. This infusion will increase the Kingdom’s current ownership stake to approximately 60%.
This latest funding injection follows closely after Lucid’s recent disclosure to investors that it intends to manufacture approximately 9,000 units of its Air electric vehicles this year, a slight increase from last year’s production volume. Despite this, the company faced a $2.8 billion loss in 2023, ending the year with nearly $1.4 billion in cash and equivalents.
The move underscores Saudi Arabia’s continued support for Lucid Motors’ growth and development in the electric vehicle market. With the added financial backing, Lucid aims to strengthen its position in the industry and accelerate its production capabilities to meet the growing demand for luxury electric vehicles.
The company has faced challenges in finding willing buyers for its expensive Air sedan and has responded by slashing prices multiple times in recent months to stimulate sales. Additionally, Lucid intends to commence production of its electric Gravity SUV by the end of this year.
Also Read: Unique Startup Accelerators and Incubators in Saudi ArabiaThe investment announcement comes shortly after CEO Peter Rawlinson expressed caution about overreliance on Saudi Arabia to inject funds into the company continuously. Rawlinson emphasized the importance of not adopting a mindset that assumes unlimited wealth from the Public Investment Fund (PIF), recognising the need to approach the partnership with respect and prudence.
These developments underscore Lucid’s proactive approach to addressing market challenges while expanding its product lineup. By reducing prices and introducing new vehicle models, the company aims to strengthen its position in the electric vehicle market and enhance its appeal to consumers.
Rawlinson’s remarks highlight the company’s commitment to maintaining a balanced and sustainable business strategy, leveraging partnerships like the one with PIF while also exercising caution against dependency on any single source of funding.
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