(Reuters) -Lucid Group said on Monday its largest shareholder, Saudi Arabia’s Public Investment Fund, will inject up to $1.5 billion in cash, as the electric vehicle maker looks to ramp up production of a new SUV. This Lucid funding SUV enables the company to advance technology and expand manufacturing. Therefore, Lucid is well-positioned to impact the electric vehicle industry significantly. #LucidFundingSUV
The EV maker’s shares jumped about 6% in extended trading after closing down 3.9% in the regular session.
The deal comes just ahead of Lucid’s planned production of its much-awaited Gravity SUV later this year and keeps the EV maker sufficiently funded till the fourth quarter of 2025.
Lucid will use the funds for tooling to produce the Gravity SUV. Additionally, the money will help build a factory in Saudi Arabia. This factory will have an annual capacity of 150,000 vehicles, according to CEO Peter Rawlinson.
Ayar Third Investment will buy $750 million in convertible preferred stock and provide a similar amount as a credit line. This marks the second investment from the PIF affiliate this year.
“The $1.5 billion helps to solidify the relationship between PIF and Lucid further. There was some investor concern out there that should the PIF become frustrated with the company that they wouldn’t provide any additional commitments,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
The PIF’s investment has grown to a total of about $8 billion, he added. The sovereign wealth fund has a stake of about 60% in the company. #LucidFundingSUV
The Lucid funding for the SUV rollout represents a crucial step forward for the company. This funding not only helps in bringing their new SUV to market but also strengthens their competitive edge. As a result, Lucid is set to drive innovation and growth in the electric vehicle sector.
