EV startup Lucid (LCID) simply won every other $1 billion funding from Saudi Public Funding Fund (PIF) associate Ayar 3rd Funding Co. The brand new investment will assist improve the release of Lucid’s first electrical SUV, the Gravity, later this 12 months.
Lucid will get $1 billion funding forward of Gravity release
“We’re extraordinarily happy to obtain this robust, endured improve from the PIF, as we paintings to solidify our position as the arena’s main EV generation corporate,” Lucid CEO Peter Rawlinson stated.
Lucid introduced an settlement with Ayar 3rd on Monday to buy $1 billion in newly created convertible most popular inventory.
Rawlinson known as PIFs improve “a key differentiator” because it appears to boost up deliveries, scale back prices, and release its first electrical SUV, the Gravity.
Lucid stated it’ll use the brand new budget for basic functions, together with capital expenditures and dealing capital.
Saudi Arabia’s PIF already owns a greater than 60% stake in Lucid. Since 2018, PIF has invested round $5.4 billion within the EV maker.
The inside track comes after Lucid introduced it expects to construct about 9,000 cars this 12 months, up best fairly from the 8,428 EVs produced remaining 12 months.
2024 Lucid Air (Supply: Lucid Motors)
Lucid’s 2023 deliveries fell some distance in need of its preliminary 10,000 to fourteen,000 objective, with best 8,428 EVs passed over remaining 12 months.
In spite of a internet lack of $653.8 million, Lucid ended This autumn with over $4.3 billion in money equivalents and investments. To spice up gross sales, Lucid additionally slashed costs at the 2024 Air EV.
Lucid hopes its first electrical SUV, the Gravity, can assist spark momentum. The Gravity is scheduled to go into manufacturing later this 12 months.
Lucid (LCID) inventory chart over the last twelve months (Supply: TradingView)
Lucid inventory is up over 8% following the scoop, however LCID stocks are nonetheless down over 60% over the last twelve months.
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