While seeking luxury EV buyers, Lucid Motors raises $1 billion from Saudi Arabia.

As part of its efforts to reduce the exorbitant costs involved with the production and sale of its premium electric automobile, Lucid Motors is attempting to raise an additional one billion dollars from Saudi Arabia, which is its most significant financial backer.

In a regulatory filing that was made public on Monday morning, the firm disclosed that Ayar Third Investment, which is a subsidiary of the Public Investment Fund of Saudi Arabia, has reached an agreement to acquire one billion dollars' worth of Lucid's stock. This acquisition would add to the Kingdom's existing holding of almost sixty percent ownership.

In only a few short weeks, Lucid informed investors that it only intends to manufacture approximately 9,000 of its Air electric vehicles this year.

This represents a minor increase in production compared to the amount that was produced the previous year. In the year 2023, it incurred a loss of $2.8 billion, and by the end of the year, it had a cash and equivalents balance of just under $1.4 billion.

As a result of the company's inability to locate clients who are prepared to purchase its pricey Air car, the company has reduced its prices on many occasions over the past few months in an effort to increase sales. 

In addition, Lucid intends to initiate the production of its electrified electrified Gravity SUV before the end of this year.

The investment was disclosed by Lucid less than three weeks after CEO Peter Rawlinson expressed his concern to the Financial Times about the possibility of placing an excessive amount of reliance on Saudi Arabia in order to continue pouring money into its figurative furnace. 

"If I adopt a mindset that there is bottomless wealth from PIF, that is very dangerous, that is something I will never do, I respect them far too much for that," Rawlinson stated at that particular moment.

Stay turned for development