The Lucid Air on display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC
Lucid Group said on Monday its largest shareholder, Saudi Arabia’s Public Investment Fund, will inject $1.5 billion in cash, as the electric vehicle maker looks to add new models to its product line.
The EV maker’s shares, which closed down 3.9%, were up about 3% in extended trading.
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.
Ayar Third Investment, an affiliate of PIF, has agreed to buy $750 million worth of convertible preferred stock and provide a similar amount as a credit line.
The company also reported second-quarter revenue above analysts’ estimates as price cuts helped drive higher sales of its luxury electric sedans during the April-June period.
In February, Lucid cut prices of its flagship Air sedans by up to 10% to reignite sales as consumers increasingly opted for more budget-friendly gasoline-electric hybrid cars in response to prevailing high interest rates.
Revenue for the second quarter was $200.6 million, compared with analysts’ estimate of $192.1 million, according to LSEG data.
In the same quarter, the company delivered a record 2,394 vehicles, beating market expectations, while market leader Tesla reported a smaller-than-expected decline.
Lucid is gearing up to expand its product line with a more affordable mid-size car expected to roll out in late 2026.
The company posted a net loss of $790.3 million in the June quarter, compared with a loss of $764.2 million a year earlier.
It ended the second quarter with cash and cash equivalents of $1.35 billion, compared with $1.37 billion at the end of 2023.