Saudis continue to keep electric vehicle maker Lucid flush with cash

Electric vehicles maker Lucid Group, Inc is getting another infusion of Saudi cash.

The American company announced it had entered into funding commitments with Ayar Third Investment Company, its majority stockholder and an affiliate of the Public Investment Fund (PIF) of Saudi Arabia.

As per the agreement, Ayar will purchase $750 million of convertible preferred stock in Lucid via private placement, and provide $750 million in unsecured delayed draw term loans.

Lucid will use the net proceeds from the fund-raise for general corporate purposes, "which may include, among other things, capital expenditures and working capital," the company said in a statement.

However, the company is unlikely to actually use the draw-down loan facility any time soon: second quarter results, delivered the same day as Lucid's announcement, revealed the company had $4.28 billion of cash on hand.

Gagan Dhingra, Interim Chief Financial Officer and Principal Accounting Officer at Lucid said in a statement announcing the results: "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."

He said the company was committed to "maintaining a healthy balance sheet to execute on our strategic vision".

Saudi Arabia has been a long-time investor in Lucid. In March this year, Ayar had purchased $1 billion of new convertible preferred stock in the Silicon Valley-based company, which says it is "focused on creating the most advanced EVs in the world."

Lucid is currently setting up a state-of-the-art, vertically integrated factory in Arizona where it will begin production of the Lucid Gravity, a full-size SUV with seating for seven people and a projected peak range of 440 miles. (~700 km)

Meanwhile, the company reported Q2 revenue of $200.6 million on deliveries of 2,394 vehicles, up 71 percent over the same quarter last year. Lucid said it expects to manufacture ~9,000 vehicles this year.

Peter Rawlinson, CEO and CTO of Lucid said in a statement: "I'm very encouraged by our sales and market share momentum we're experiencing, the benefits we're realizing from our cost optimization programs, and the excitement that's been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year."