Lucid Motors has secured an impressive $1.5 billion investment from Saudi Arabia, announced on Monday alongside its Q2 2024 financial results.
This new infusion includes a $750 million loan and a $750 million investment from Ayar Third Investment, which will be exchanged for convertible preferred stock. Ayar Third Investment, an affiliate of Saudi Arabia’s Public Investment Fund (PIF), remains Lucid’s largest shareholder.
This is the second significant Saudi investment in Lucid this year, pushing the total investment from the Kingdom to around $8 billion and increasing its stake to approximately 60%.
The fresh capital is set to sustain Lucid through at least the fourth quarter of 2025. It will fund the production of the eagerly anticipated Gravity SUV and support the expansion of its newly established Saudi Arabian plant. This facility, inaugurated last fall, currently assembles the Air sedan at a rate of 5,000 units annually, with a future target of producing 150,000 vehicles per year.
In addition to its Saudi operations, Lucid’s Casa Grande, Arizona plant is gearing up to produce 365,000 units annually and will soon start manufacturing the Gravity SUV.
Despite the ambitious plans, Lucid faces challenges: it produced just 2,110 vehicles in Q2 and aims for about 9,000 units by year-end, up from 8,428 vehicles last year. The company also reported a loss of $790 million for the quarter, marking a 3% increase from the previous year.