- Lucid is raising approximately $3 billion through a common stock offering, with the majority of the funds contributed by its Saudi owners, following a 60% stock slump. Saudi Arabia's Public Investment Fund (PIF), the kingdom's largest sovereign wealth fund, will invest $1.8 billion in a private placement.
- PIF, the fund, currently owns about 60% of Lucid, a California-based EV maker. Bank of America is the sole book-running manager for Lucid's public offering. PIF initially invested in Lucid in 2018 and gradually increased its ownership. Lucid went public in 2021 through a merger with a SPAC, temporarily surpassing Ford and General Motors in market value. In January this year, Lucid's shares surged on speculation of a PIF buyout.
Why it matters
Saudi Arabia's investment in Lucid includes plans for an EV factory as part of its goal to become an automaker hub. Lucid's production target of 300,000 cars relies on Saudi Arabia for half of it. However, Lucid has faced challenges with costs, production, and competition in the EV market. The company aims to establish itself in the market but has experienced fluctuations in its market capitalization.