RIYADH: US automaker Lucid Group has secured $1.5 billion in new funding from its majority shareholder, Ayar Third Investment Co., an affiliate of Saudi Arabia’s Public Investment Fund. The deal includes $750 million in convertible preferred stock via private placement and a $750 million unsecured delayed draw term loan facility, subject to certain terms and conditions, according to a statement. This is in line with PIF’s aim to be a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities to shape the future global economy while driving Saudi Arabia’s economic transformation. It also aligns well with Lucid’s mission to expedite the global shift toward sustainable transportation and energy by crafting the most advanced electric vehicles available. “The additional $1.5 billion commitment by an affiliate of the PIF announced today is expected to provide sufficient liquidity into at least the fourth quarter of 2025,” the Interim Chief Financial Officer and Principal Accounting Officer at Lucid Gagan Dhingra said. The statement further revealed that the PIF-backed firm plans to utilize the funds raised from the private placement and potential proceeds from the term loan for general corporate uses, which could encompass various activities such as investments and meeting working capital needs. The EV maker also announced its financial results for the second quarter, which ended June 30. Lucid reported revenue of $200.6 million on deliveries of 2,394 vehicles during this period, according to a statement. The carmaker expects to manufacture approximately 9,000 vehicles in 2024. Lucid ended the second quarter with approximately $4.28 billion of total liquidity. “Our Q2 financial performance reflects the positive momentum of increased sales of Lucid Air and the results of our cost reduction efforts, which contribute to the journey toward improving gross margin,” Dhingra said. Peter Rawlinson, CEO and Chief Technology Officer of Lucid said: “I’m very encouraged by our sales and market share momentum we’re experiencing, the benefits we’re realizing from our cost optimization programs, and the excitement that’s been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year.” Rawlinson added: “The tremendous financial value potential our technology enables is now becoming better recognized, and our achievement of a landmark efficiency of 5.0 miles per kilowatt hour, ahead of where we anticipated, is a further proof point of our leadership as a technology company.” In September 2023, Lucid opened its first plant outside the US in Saudi Arabia, with an initial capacity of 5,000 EVs annually.