Lucid Group intends to generate approximately $3 billion through a stock offering, with the majority of the funding sourced from its existing investor, the Public Investment Fund of Saudi Arabia, the nation’s sovereign wealth fund.
According to Lucid’s statement, the Public Investment Fund (PIF) of Saudi, currently holding a majority stake of 60.5 percent in the company, will acquire over 265 million shares of Lucid’s common stock through a private placement, amounting to around $1.8 billion. The private placement is expected to be closed on June 26, 2023.
The PIF bought into Lucid in 2018. In 2021, the PIF, US Investment firm BlackRock and others also invested an additional $2.5 billion into Lucid.
In 2022, Lucid Chairman Andrew Liveris had committed that the company intended to set up a factory in Saudi Arabia by 2026. This factory would aim at producing 1,50,000 cars per year. Saudi Arabia, the largest economy in the Arab world, is actively pursuing economic diversification as part of its Vision 2030 agenda. A crucial aspect of this initiative involves supporting the sustainable development goals across various economic sectors.
The kingdom of Saudi is committed to achieving net-zero carbon emissions by 2060 through the implementation of a circular carbon economy approach. As part of its strategy, it has actively been transitioning towards greener modes of transportation. This shift has propelled the kingdom’s electric vehicle (EV) market to significant growth, resulting in Saudi Arabia securing a spot in the top-50 ranking of AlixPartner’s Automotive Electrification Index for the first time. The recent index, released last month, highlights the kingdom’s progress and rising prominence in the EV sector.
Lucid has entered into a significant agreement with the Saudi Arabian government, specifically with the Ministry of Finance, for the sale of 100,000 vehicles. This strategic partnership aims to bolster Riyadh’s sustainability initiatives. The deal, spanning a 10-year period, encompasses the flagship Lucid Air model as well as future vehicle models. The agreement includes an initial commitment to purchase 50,000 vehicles, with an option to acquire an additional 50,000 cars within the same timeframe.
