Lucid Secures As much as $1.5 Billion in Funding Forward of Gravity SUV Launch : Automotive Addicts
Automotive
Lucid Group has introduced a major money injection of as much as $1.5 billion from its largest shareholder, Saudi Arabia’s Public Funding Fund (PIF). This funding comes at a crucial time as the electrical automobile (EV) maker prepares to ramp up manufacturing of its extremely anticipated Gravity SUV.
The announcement, made on Monday, noticed Lucid’s shares rise by about 6% in prolonged buying and selling, regardless of a 3.9% drop through the common session. The funding is anticipated to maintain Lucid financially safe till the fourth quarter of 2025, coinciding with the deliberate rollout of the Gravity SUV later this 12 months.
Lucid plans to make use of the brand new funds to advance its manufacturing capabilities for the Gravity SUV and to help the development of its manufacturing facility in Saudi Arabia, which goals for an annual capability of 150,000 autos. CEO Peter Rawlinson shared these plans with Reuters, highlighting the strategic significance of this funding for the corporate’s future development.
The deal entails Ayar Third Funding, a PIF affiliate, buying $750 million value of convertible most well-liked inventory and lengthening an extra $750 million as a credit score line. This marks the second important funding from the PIF affiliate this 12 months, additional solidifying the connection between Lucid and the PIF. Andres Sheppard, a senior fairness analyst at Cantor Fitzgerald, famous that this funding alleviates investor considerations concerning the PIF’s dedication to Lucid, bringing the full PIF funding within the firm to roughly $8 billion and rising its stake to about 60%.
Along with the funding information, Lucid reported better-than-expected second-quarter income, pushed by worth cuts on its luxurious electrical sedans. The corporate generated $200.6 million in income, surpassing analysts’ expectations of $192.1 million. Lucid had decreased costs for its flagship Air sedans by as much as 10% in February to spice up gross sales amid rising client choice for extra budget-friendly gasoline-electric hybrid autos.
Lucid produced 3,838 autos within the first half of the 12 months and reaffirmed its goal of producing 9,000 items by year-end. The corporate delivered a report 2,394 autos within the second quarter, exceeding market expectations.
Trying forward, Lucid plans to diversify its product lineup with a extra reasonably priced mid-size automobile set to debut in late 2026. Regardless of reporting an adjusted lack of 29 cents per share for the second quarter, barely wider than analysts’ estimate of a 27-cent loss, Lucid stays financially sturdy, ending the quarter with $1.35 billion in money and money equivalents. The corporate additionally revised its capital expenditure forecast for 2024, decreasing it by $200 million from the earlier outlook of $1.5 billion.
This infusion of capital from the PIF not solely strengthens Lucid’s monetary place but additionally underscores the strategic alliance between the 2 entities, paving the best way for the profitable launch of the Gravity SUV and past.
FOLLOW US TODAY:
