Lucid Group said on Monday its largest shareholder, Saudi Arabia's Public Investment Fund, will inject up to $1.5 billion in cash, as the electric vehicle maker looks to ramp up production of a new SUV.
The EV maker's shares jumped about 6% in extended trading after closing down 3.9% in the regular session.
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.
Lucid will use the funds for tooling to produce the Gravity SUV and to build its factory in Saudi Arabia, with an annual capacity of 150,000 vehicles per year, among other investments, CEO Peter Rawlinson told Reuters.
Ayar Third Investment has agreed to buy $750 million worth of convertible preferred stock and provide a similar amount as a credit line, marking the second investment from the PIF affiliate this year.
"The $1.5 billion helps to solidify the relationship between PIF and Lucid further. There was some investor concern out there that should the PIF become frustrated with the company that they wouldn't provide any additional commitments," said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
The PIF's investment has grown to a total of about $8 billion, he added. The sovereign wealth fund has a stake of about 60% in the company.
The company also reported second-quarter revenue above analysts' estimates as price cuts helped drive 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.
Revenue for the second quarter was $200.6 million, compared with analysts' estimate of $192.1 million, according to LSEG data.
Lucid made 3,838 vehicles in the first half of the year and stuck to its target of making 9,000 units by the end of the year on Monday. In the second quarter, the company delivered a record 2,394 vehicles, beating market expectations.
Lucid is also gearing up to expand its product line with a more affordable mid-size car expected to roll out in late 2026.
On an adjusted basis, it reported a loss of 29 cents per share, wider than analysts' average estimate of a loss of 27 cents.
It ended the second quarter with cash and cash equivalents of $1.35 billion, compared with $1.37 billion at the end of 2023. Lucid also decreased its capital expenditure forecast for 2024 by $200 million from its prior outlook of $1.5 billion.
