Electric automaker Lucid said on Monday that it had signed a deal to raise $1 billion in funding from an affiliate of the Saudi state-owned Public Investment Fund (PIF). Ayar Third Investment Company, a subsidiary of the sovereign wealth fund, will buy $1 billion in convertible preferred stock and will be able to convert the preferred stock into about 280 million shares. The California-based company EV giant said it intends to use the proceeds for corporate purposes and capital expenditure among other things. Lucid shares rose about four percent during trading outside of main business hours. Lucid"s move led to sending the shares of the luxury electric carmaker up nearly 20 percent. The latest investment by PIF underscores a key advantage Lucid has in the race for survival among struggling EV startups. The Saudi government, which has a 60 percent stake, has invested billions in Lucid’s success as part of a strategy to diversify the Kingdom’s economy beyond oil. It is noteworthy that Lucid opened its first-ever car manufacturing facility in Saudi Arabia in September 2023. As Lucid’s second Advanced Manufacturing Plant and first international plant, the facility will produce Lucid’s ground-breaking electric vehicles for Saudi Arabia and export to other markets.