Saudi Arabia mentioned it could pump extra money into electrical car startup Lucid Motors as the corporate struggles to make up for losses. Lucid mentioned on Monday Second Quarter Earnings Report An affiliate of Saudi Arabia’s sovereign wealth fund is predicted to contribute one other $1.5 billion, half in a non-public placement and half as a credit score line.
The deal additional deepens Lucid’s relationship with its largest shareholder, which has already dedicated to purchasing not less than 50,000 Lucid EVs over the following few years and helps the corporate construct a brand new manufacturing unit in Saudi Arabia.
That is the second time Lucid has approached Saudi Arabia for monetary backing, following Lucid CEO Peter Rawlinson’s departure. He told the Financial Times In a March 2024 interview, he mentioned he was cautious of relying too closely on the dominion’s sovereign wealth fund. “If I have been to undertake the concept that there may be limitless wealth available from the PIF, that will be very harmful and I might by no means do this. I respect the PIF an excessive amount of to try this,” he instructed monetary media.
The brand new funding comes on the similar time that Lucid introduced it misplaced $643 million within the second quarter of 2024, regardless of a record-setting gross sales report for its luxurious electrical sedan, which generated $200 million in income. Lucid reported it had $1.35 billion in money and money equivalents on the finish of the second quarter.
Lucid not solely wants cash to cease the bleeding because it tries to develop a marketplace for its Air luxurious sedan, it additionally wants cash for the approaching launch of its first electrical SUV, the Gravity. Lucid mentioned manufacturing of the Gravity will start by the tip of 2024, and it’s banking on the car’s success in North America given the mannequin’s reputation there. The corporate laid off about 400 workers, or about 6% of its workforce, in Might 2024 as a part of a restructuring effort forward of the launch of the Gravity SUV.
