Lucid Air will be on display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC
sobriety group Saudi Arabia’s Public Investment Fund, its biggest shareholder, will inject $1.5 billion in cash, it said on Monday, as the electric car maker looks to add new models to its lineup.
Shares of the electric vehicle maker closed down 3.9% but rose about 3% in after-hours trading.
The deal comes ahead of Lucid’s plans to start production of its highly anticipated Gravity SUV later this year and leaves the electric car maker well-funded until the fourth quarter of 2025.
Ayar Third Investment, an affiliate of PIF, has agreed to purchase convertible preferred stock worth $750 million and provide a credit line of a similar amount.
The company also reported second-quarter revenue that topped analysts’ expectations as price cuts helped boost sales of luxury electric sedans between April and June.
In February, Lucid cut the price of its flagship Air sedan by 10 percent to reignite sales as consumers increasingly opt for more affordable gasoline-electric hybrids to combat widespread high interest rates.
Second-quarter revenue was $200.6 million, compared with analysts’ expectations of $192.1 million, according to LSEG data.
In the same quarter, the company publish Sales hit a record 2,394 units, beating market expectations, while market leader Tesla fell less than expected.
Lucid is preparing to expand its product line with a more affordable midsize car, expected to be launched by the end of 2026.
The company reported a net loss of $790.3 million in the second quarter, compared with a net loss of $764.2 million in the same period last year.
At the end of the second quarter, the company had $1.35 billion in cash and cash equivalents, compared with $1.37 billion at the end of 2023.
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