Lucid Group stated Monday that its largest stakeholder, Saudi Arabia’s Public Investment Fund, will invest up to $1.5 billion in new SUV production.
Shares of the EV maker rose 6% in extended trading after falling 3.9% in the regular session.
The deal funds Lucid until the fourth quarter of 2025, just in time for its Gravity SUV manufacturing later this year.
CEO Peter Rawlinson told reporters that Lucid will use the funds for Gravity SUV tooling and investment in its Saudi Arabian factory, which will produce 150,000 vehicles per year.
“The $1.5 billion strengthens PIF-Lucid ties. Andres Sheppard, senior equities analyst at Cantor Fitzgerald, said investors were worried that the PIF would stop making pledges if they got irritated.
He said the PIF’s investment has reached $8 billion. About 60% of the corporation is owned by the sovereign wealth fund.
As price reductions drove luxury electric sedan sales in April and June, the business posted second-quarter revenue beyond analysts’ projections.
Lucid lowered the price of its flagship Air sedans by up to 10% in February to boost sales as consumers chose cheaper gasoline-electric hybrids.
According to LSEG data, second-quarter revenue was $200.6 million, compared to analysts’ projection of $192.1 million.
