Lucid Motors Gains $1.5 Billion Investment From Saudi PIF As It Exceeds Q2 Revenue Projections

Lucid Motors announced that it has secured a new $1.5 billion investment from Saudi Arabia’s Public Investment Fund (PIF), where this cash infusion comes as the company reported better-than-expected revenue for Q2 2024, though it missed earnings estimates.

In detail, the investment will be made through Ayar Third Investment Company, an affiliate of the PIF, which is already Lucid’s majority shareholder. The funding package includes $750 million in convertible preferred stock and a $750 million unsecured loan. This follows a previous $1 billion investment from the same PIF affiliate in March.

Lucid’s Q2 financial results showed revenue of $200.6 million, surpassing Wall Street estimates of $192 million. However, the company reported a loss of 29 cents per share, slightly wider than the expected 26 cents per share. Moreover, the company delivered a record 2,394 vehicles in Q2, up 22% from the previous quarter, while producing 2,110 units at its AMP-1 manufacturing plant in Arizona.

Gagan Dhingra, Interim Chief Financial Officer and Principal Accounting Officer at Lucid, expressed the result of the company’s earnings results stating, “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. 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.”

Lucid reaffirmed its target of producing 9,000 units in 2024, with 5,163 units still to be built in the second half of the year. The company is also gearing up for the launch of its first electric SUV, the Gravity, aimed for production in late 2024. The Gravity, projected to start at under $80,000, represents Lucid’s bid to expand its market reach beyond its current luxury model offering.

Read More: Lucid Begins Pre-Production Stage Of Gravity SUV At Arizona Plant

In addition, Lucid has plans for a lower-priced midsize SUV to enter production in late 2026. The company also touted its technological prowess, claiming that its 2025 Air Pure model is the “most energy-efficient mass production car ever,” with 5 miles per kWh and a record 146 MPGe EPA estimated range rating.

Despite the earnings results of its Q2 2024, Lucid’s latest funding round is seen as critical to helping the company through the challenging period when scaling costs outweigh revenue. With this investment, Lucid aims to ramp up production, bring new models to market, and solidify its position in the competitive EV market.

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