Lucid Motors has once again secured a massive $1 billion investment from its main financial supporter, Saudi Arabia. This move comes as the company seeks to minimize the soaring expenses involved in manufacturing and selling its luxurious electric sedan.
The kingdom’s Public Investment Fund has committed to purchasing $1 billion worth of Lucid’s stocks, adding to its current majority ownership of approximately 60%.
The recent funding arrives on the heels of Lucid’s announcement to investors that it intends to produce only 9,000 units of its Air electric vehicle this year, a slight increase from last year’s figures. With a massive loss of $2.8 billion in 2023, the company ended the year with nearly $1.4 billion in cash and equivalents.
The demand for its high-priced Air sedan has been weaker than expected, leading to multiple price cuts in recent months in a bid to bolster sales. Furthermore, Lucid plans to commence manufacturing its electric Gravity SUV by the end of this year.
The investment was unveiled just three weeks after CEO Peter Rawlinson expressed his concerns to the Financial Times about relying too heavily on Saudi’s continual financial support. “It’s extremely dangerous to have the mindset that limitless wealth from PIF will keep pouring in. I have too much respect for them to adopt such a stance,” Rawlinson stated.
