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| Lucid Group |
Electric vehicle maker Lucid Group announced on Monday that its largest shareholder, Saudi Arabia's Public Investment Fund (PIF), will invest up to $1.5 billion. The main purpose of this investment is to support Lucid's plan to add new models to its product line.
Following the announcement, Lucid shares, which closed down 3.9%, jumped 12% in extended trade. The investment comes at a crucial time for Lucid, as the company plans to begin production of its much-anticipated Gravity SUV later this year.
PIF affiliate Ayar Third Investment has agreed to buy $750 million worth of convertible preferred stock and provide the same amount as a credit line. The investment will give Lucid enough financing until the fourth quarter of 2025.
Lucid reported revenue above analysts' estimates for the second quarter. The company's revenue came in at $200.6 million, compared with analysts' estimate of $192.1 million. During the period, the company sold more of its luxury electric sedans thanks to price cuts.
Lucid delivered a record 2,394 vehicles in the second quarter, compared with 3,838 in the first half of the year. The company has pledged to stick to its goal of making 9,000 units by the end of the year.
Lucid plans to expand its product line with a more affordable mid-size car in late 2026.
However, the company reported a loss of 29 cents per share on an adjusted basis, wider than analysts' average estimate of a loss of 27 cents. The company had cash and cash equivalents of $1.35 billion at the end of the second quarter, compared with $1.37 billion at the end of 2023.
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