The investment came through Lucid's majority stockholder, Ayar Third Investment Co., an affiliate of the Kingdom's sovereign wealth body.

The funds will be acquired through convertible preferred stock, which can be converted into approximately 280 million shares.

The Saudi government owns 60% of the company and has previously invested billions as part of a plan to diversify the economy beyond oil.

Lucid's CEO, Peter Rawlinson, expressed pleasure over the continued support from PIF.

The text discusses Lucid's plans for continued investment in technology and manufacturing, with the support of Public Investment Fund (PIF).

Lucid aims to grow by increasing production to 9,000 units in 2024, focusing on cost execution and launching their new Gravity SUV. This announcement comes amidst a slowdown in demand and price war in the global electric vehicle market, with Lucid's Air sedans competing against models from Tesla, Mercedes-Benz, BMW, Audi, and Porsche.

Lucid, an electric vehicle (EV) manufacturer, reassured investors in February 2024 with a financial presentation, stating they had enough funds, approximately $4.8 billion, including $4.3 billion in cash, to last until 2025.

The company plans to spend $1.5 billion on capital expenditures in 2024 to launch its Gravity SUV line.

In September 2023, Lucid opened a new plant in Saudi Arabia with an initial capacity to produce 5,000 EVs annually, with the Saudi Arabian government committing to buy up to 100,000 vehicles over a decade.

The vehicles are built in Arizona, disassembled, and then shipped as kits to be reassembled in Saudi Arabia.

A factory in Jeddah, Saudi Arabia is working to recondition used electric vehicles (EVs) for resale.

The process includes re-attaching the battery, putting on the trim and tires, and re-testing the vehicle.

Lucid is one of the EV companies in the Saudi market, but the crown prince recently announced the launch of CEER, a government-owned enterprise that will produce and sell battery-powered vehicles in the country.

(Reuters)