Saudi Arabia’s Public Investment Fund (PIF) has amplified its investment in electric vehicle startup Lucid Motors, bringing the total to an impressive $10 billion. This funding boost signifies the Saudi Arabian fund’s strong confidence in Lucid Motors’ potential.
Based in Newark, California, Lucid Motors recently received additional funding from Ayar Third Investment, a subsidiary of the PIF. This fresh financial injection brings Saudi Arabia’s total share in Lucid Motors to approximately 72%, reinforcing the Newark-based firm’s positioning for growth and operational scaling.
Lucid Motors has outlined an intention to produce 20,000 units by 2024. This target figures higher than a previous goal of 8,500 vehicles set for 2023, and though it falls short of the 14,000 vehicles predicted by analysts, it reflects an ambitious push by the company.
Saudi fund boosts Lucid Motors investment
Lucid also aims to produce 50,000 units by 2026, despite challenges in marketing its high-end Air Sedan.
Peter Rawlinson, Lucid Motors’ CEO, acknowledges the company’s need for capital and emphasizes Saudi Arabia’s vital role in financing the startup. The continuous support from PIF throughout each funding round underlines this crucial relationship.
In addition to investing in Lucid Motors, the PIF has made significant strides in the Electric Vehicle sector, holding a $2 billion stake in Tesla until 2020 and initiating the National Automotive and Mobility Investment Company to boost EV production within Saudi Arabia.
The PIF-Network collaboration involves plans to establish a manufacturing facility in Saudi Arabia. Projected to be operational by 2026, the factory aims to produce 50,000 units per year initially, but has the potential to ramp up to a maximum output of 155,000 units annually.
The PIF has also partnered with Taiwan’s Foxconn to create Ceer Motors, aiming to develop the first EV brand in Saudi Arabia and produce half a million EVs annually by 2030. To date, the venture has assembled 800 vehicles from parts sourced in Arizona, indicating an optimistic start towards achieving their goal.
