The kingdom's Public Investment Fund is sending Lucid another $1.5 billion to shore up its finances.
Lucid $LCID just reported a second-quarter net loss of $790 million even though it recorded a record number of sales for its Air electric sedan in the April-June period. Somehow, the loss was 3.4 percent higher than it was during the same quarter last year. Second-quarter revenue was $201 million, which is a 33 percent improvement over the $151 million in the same timeframe a year earlier. Lucid says it ended the second quarter with cash, cash equivalents and investments of $4.3 billion.
Still, its biggest shareholder, Saudi Arabia’s Public Investment Fund is sending the California-based automaker another $1.5 billion to shore up its finances. From Automotive News:
Ayar Third Investment, an affiliate of the Saudi fund, has agreed to buy $750 million worth of convertible preferred stock and provide a similar amount as a credit line, Lucid said in a news release.
“The additional $1.5 billion commitment by an affiliate of the PIF announced today is expected to provide sufficient liquidity into at least the fourth quarter of 2025,” said Gagan Dhingra, Lucid’s interim CFO.
The Newark, Calif., startup, which launched the Air in 2021, said it delivered a record 2,394 cars in the quarter. But Lucid also boosted sales incentives to $16,537 per vehicle, according to Motor Intelligence.
The large sedan, Lucid’s lone model, starts at $71,400 including shipping. Lucid said it will begin production of a three-row crossover, the Gravity, this year. It has a starting price just under $80,000 before shipping.
Prior to the second-quarter earnings report, Lucid said it would seek additional investment for its future product plans. The automaker plans to launch vehicles below $50,000 on a midsize platform starting in late 2026.
“This is a capital intensive business and we do need to raise more money,” Lucid CEO Peter Rawlinson told Bloomberg in mid-July. Rawlinson said Saudi Arabia’s Public Investment Fund remained a long-term partner as Lucid develops new electric models.
Lucid’s main factory is in Casa Grande, Arizona, but it has a small facility in Saudi Arabia that does final assembly on pre-assembled Airs shipped from the United States.
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