Lucid Secures $1 Billion from Saudi PIF Affiliate in New Deal
Lucid Group, Inc. has entered into an agreement with Ayar Third Investment Company, an affiliate of Saudi Arabia's Public Investment Fund (PIF), for a private placement of $1 billion in convertible preferred stock. This financial move comes as the luxury electric automaker aims to bolster its corporate purposes, capital expenditures, and working capital. The agreement is subject to the fulfillment of customary closing conditions.
Once the deal is finalized, PIF, which currently holds a 60% stake in Lucid, will have the option to convert the preferred stock into approximately 280 million common shares of Lucid. This deal provides Lucid with additional financial resources, adding to the $4.8 billion in available funds it had at the end of the previous year. Lucid has indicated that this funding should ensure sufficient liquidity through at least 2025, supporting its forecasted capital expenditures, including a projected $1.5 billion in 2024.
The announcement includes forward-looking statements within the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Lucid has cautioned that these statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially. Investors are reminded to consider the risk factors outlined in Lucid's Annual Report on Form 10-K for the year ended December 31, 2023. Following the news, Lucid's shares experienced a surge in premarket trading.
