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Lucid Group Inc. will get a cash infusion of as much as $1.5 billion from an affiliate of Saudi Arabia\u2019s Public Investment Fund as the electric-car maker readies its first sport utility vehicle.<\/p>\n
Ayar Third Investment Company has agreed to make the investments by purchasing $750 million of convertible preferred stock and providing a $750 million unsecured loan, Lucid<\/a> said in a statement Monday. The fresh funding comes as the carmaker works to overcome production hurdles and copes with slowing EV demand.<\/p>\n Lucid shares traded up as much as 16% before the start of regular trading Tuesday. The stock was down about 29% for the year through Monday\u2019s close.<\/p>\n The Newark, California-based EV maker already\u00a0received $1 billion<\/a>\u00a0from Ayar in March. A few weeks later, Lucid announced it would cut about 6% of its workforce by the end of the third quarter. The news followed a tough 2023 in which the company struggled to boost output, cut staff and saw a\u00a0shakeup<\/a>\u00a0at the top of its management ranks.<\/p>\n Lucid said it intends to use its new cash infusion for general corporate purposes, including capital expenditures and working capital. The money is expected to fund the manufacturer through the fourth quarter of next year.<\/p>\n The company also reported second-quarter revenue of $200.6 million, beating the average Wall Street estimate of $185.8 million. However, it lost 29 cents a share on an adjusted basis during the period, more than the 27-cents-a-share loss analysts anticipated.<\/p>\n Lucid was among a handful of EV makers that listed in the US the last few years, only to have trouble replicating the success of market leader Tesla<\/a> Inc. The manufacturer currently offers only one vehicle, the Lucid Air sedan, which starts at $69,900. It also plans to launch an SUV, the Lucid Gravity, later this year.<\/p>\n \u201cThe new round of funding sees us right through a key phase of not just the launch of Gravity but the ramp up,\u201d Chief Executive Officer Peter Rawlinson said in an interview.<\/p>\n Lucid unveiled the Gravity in November and said it expected the SUV to cost less than $80,000. Rawlinson posted a\u00a0video<\/a>\u00a0last week showing him driving the first pre-production Lucid Gravity off the line at the company\u2019s Arizona manufacturing facility.<\/p>\n The company announced in July that it had delivered 2,394 vehicles and produced 2,110 during its second quarter, beating expectations. On Monday, Lucid reaffirmed its forecast that it expects to make 9,000 vehicles this year.<\/p>\n<\/div>\nRecommended Newsletter: <\/strong>CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n<\/div>\n