Troubled US electric-car maker Lucid gets $1bn from Saudi fund

The New Lucid Air Sapphire electric car is presented during the press day at the 91th Geneva International Motor Show (GIMS) in Geneva, Switzerland, last February. Picture: Cyril Zingaro/Keystone via AP

Lucid is getting a $1bn cash injection from its biggest investor, an affiliate of Saudi Arabia’s Public Investment Fund, providing the troubled electric-car maker with a much-needed lifeline.

The new financing from Ayar Third Investment will be used in part for capital expenditure and as working capital, the company said.

Lucid shares rose 8% in New York trade, but have still lost over 25% of their value this year. In a note to clients, Morgan Stanley analysts said the fresh PIF investment was a modestly positive development.

The news came as electric-car maker Fisker said that talks with a major car maker about an investment ended without a deal, and that the company faces “significant uncertainties” as it renegotiates terms for recent financing. 

Lucid has struggled since listing in a reverse merger with a special purpose acquisition company. 

The Newark, California-based company reported it had $1.4bn (€1.3bn) in cash as of the end of 2023, down from $1.7bn a year earlier.

But the electric-car maker said at the time that it had enough liquidity to continue operations “at least into 2025”.  The latest injection from Saudi investors should reassure the market on this pledge. 

The Saudi fund had invested about $5.4bn into Lucid since 2018 and PIF owns a stake of around 60%.

Bloomberg