EV maker Lucid signs deal to raise $1 billion from Saudi’s PIF affiliate

By Thomson Reuters Mar 25, 2024 | 7:32 AM

(Reuters) – Luxury electric automaker Lucid said on Monday it had signed a deal to raise $1 billion in funding from an affiliate of Saudi Arabia’s Public Investment Fund (PIF), sending its shares up 20% before the bell.

Ayar Third Investment Company, an affiliate of the sovereign wealth fund, will buy $1 billion in convertible preferred stock, the EV maker said.

PIF has a 60% stake in the EV maker and will be able to convert the preferred stock into about 280 million shares.

The California-based company said it intends to use the proceeds for corporate purposes among other things.

Lucid had last month said in its fourth-quarter financial presentation that it had sufficient liquidity β€œat least until 2025”.

It forecast $1.5 billion in capital spending in 2024 as it pushes to launch its Gravity SUV line later this year.

The company had $4.8 billion in available funds at the end of 2023, including $4.3 billion in cash.

(Reporting by Akash Sriram in Bengaluru and Joe White in Detroit; Editing by Arun Koyyur)