Dive Brief:
- Lucid Group inked a new deal with Ayar Third Investment Co., its majority stakeholder, for a $1.5 billion capital infusion, the luxury electric vehicle maker announced in a press release Monday.
- The investment firm will purchase $750 million of convertible preferred stock via private placement, and provide for a $750 million unsecured delayed draw term loan facility, according to the release.
- Ayar Third Investment Co. is an affiliate of Saudi Arabia’s Public Investment Fund, which has invested $6.4 billion into Lucid since 2018, including $1 billion in Q1. Additionally, the country’s government has agreed to purchase up to 100,000 Lucid vehicles by 2032.
Dive Insight:
Lucid plans to use the net proceeds from the private placement and any proceeds from the term loan for general corporate purposes, such as capital expenditures and working capital, the release said.
The $1.5 billion in fresh funding will extend Lucid’s runaway to Q4 2025, Interim CFO and Principal Accounting Officer Gagan Dhingra said, citing the company’s continued cost reduction efforts.
"We ended the second quarter with $4.28 billion in total liquidity and remain committed to maintaining a healthy balance sheet to execute on our strategic vision,” he said in a Q2 earnings release.
Lucid delivered 2,394 vehicles in Q2, generating revenue of $200.6 million. While its vehicle deliveries and revenue increased year over year, the company is still operating at a net loss, spending $643.4 million in Q2 alone, according to its earnings presentation. It anticipates $1.3 billion in capital expenditures in 2024.
The premium EV maker plans to start production of the Lucid Gravity SUV later this year. Lucid expects the SUV, as well as the lower-priced Lucid Air Pure and a new midsize platform, will expand its total addressable market. The midsize platform is expected to launch in 2026, according to the presentation.
