Lucid (LCID) gets another $1 billion investment as it prepares to launch Gravity electric SUV

EV startup Lucid (LCID) just received another $1 billion investment from Saudi Public Investment Fund (PIF) affiliate Ayar Third Investment Co. The new funding will help support the launch of Lucid’s first electric SUV, the Gravity, later this year.

Lucid gets $1 billion investment ahead of Gravity launch

“We are extremely pleased to receive this strong, continued support from the PIF, as we work to solidify our place as the world’s leading EV technology company,” Lucid CEO Peter Rawlinson said.

Lucid announced an agreement with Ayar Third on Monday to purchase $1 billion in newly created convertible preferred stock.

Rawlinson called PIFs support “a key differentiator” as it looks to accelerate deliveries, reduce costs, and launch its first electric SUV, the Gravity.

Lucid said it will use the new funds for general purposes, including capital expenditures and working capital.

Saudi Arabia’s PIF already owns a more than 60% stake in Lucid. Since 2018, PIF has invested around $5.4 billion in the EV maker.

The news comes after Lucid announced it expects to build about 9,000 vehicles this year, up only slightly from the 8,428 EVs produced last year.

Lucid’s 2023 deliveries fell far short of its initial 10,000 to 14,000 goal, with only 8,428 EVs handed over last year.

Despite a net loss of $653.8 million, Lucid ended Q4 with over $4.3 billion in cash equivalents and investments. To boost sales, Lucid also slashed prices on the 2024 Air EV.

Lucid hopes its first electric SUV, the Gravity, can help spark momentum. The Gravity is scheduled to enter production later this year.

Lucid stock is up over 8% following the news, but LCID shares are still down over 60% over the past 12 months.