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EV maker Lucid gets investment from Saudi's PIF, lets see what results do this relationship bring to the table 

EV maker Lucid receives further $1.5bn in Saudi funding ahead of SUV launch

Tesla's rival reports more vehicle deliveries in the second quarter but net loss widens to $790mn

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What’s going on HERE?

Lucid motors has received another $1.5bn in funding from its largest shareholders, Saudi Arabia’s Public Investment Fund, giving California electric vehicle start-up vital new cash to navigate a global slowdown in demand and launch a mass-market SUV.

PIF owns about 60% of Lucid, will buy $750mn in convertible preferred stock and provide a delayed draw loan facility of $750mn through an affiliate investment company called Ayar. The funding comes on top of $1bn injection in March and raises PIF's total to about $8bn.

Lucid shares rose 7% in after-hours trading. Its shares have fallen 53% in the past 12 months and 70% since the company first listed in the US via a special purpose acquisition company merger in July 2021.

Who is PIF (Public Investment Fund)?

PIF was created in 1971 so the government of Saudi Arabia could invest in things - it is a huge savings account for the country. There's so much cash in it because of the massive amounts of money Saudi Arabia has made through selling oil.

Who is Lucid?

Lucid is an American automotive and technology company that manufactures electric vehicles and supplies advanced electric vehicle powertrain systems.

Lucid markets itself as having more advanced battery technology and driving range than competitors such as Tesla, Volkswagen and Hyundai.

Why is this happening?

This investment ensures that Lucid is sufficiently funded until the fourth quarter of 2025.

Lucid requires funding for the creation of an electric vehicle and PIF sets foot into the car industry, specifically EVs.

What are its impacts on Lucid?

Lucid is getting cash injection which will help them launch the GRAVITY SUV to compete with others in the market by producing electric vehicles. This will broaden the pool of potential buyers as it once had one model and struggled to get traction in an increasingly crowded EV field.

However, due to the competition in the market of electrical vehicles, it is hard to believe that Gravity SUV will do very well because so many established companies are struggling to sell more electrical vehicles.

What are its impacts on Ayar PIF?

Saudi Arabia is opening the country’s first car manufacturing facility, which will produce electric vehicles and support the country’s vision for a more sustainable and diversified economy.

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Hope you enjoyed it!