Lucid Secures Additional $1.75 Billion in Financing from Saudi Arabia’s Public Investment Fund
American electric vehicle maker Lucid has secured an additional $1.75 billion in loan facilities from Saudi Arabia’s Public Investment Fund (PIF), its largest shareholder, strengthening its financial position as it restructures operations and works to improve performance. The financing provides the company with liquidity through the fourth quarter of 2027, according to Reuters.
In a statement on Monday, Lucid said the increase in its delayed-draw term loan facility—under which funds can be drawn as needed—raises its pro forma available liquidity to $3.75 billion. The additional funding will support new CEO Silvio Napoli in implementing the company’s recovery plan amid weak demand across the electric vehicle sector, following the end of the federal tax credit in the United States last year.
Lucid expects its available liquidity to be sufficient to sustain operations until production of its midsize vehicle begins in the second half of 2027. The company said it will announce its 2027 production guidance and medium-term plan alongside its year-end results.
Cost Reduction, Efficiency
The financing comes as Lucid continues efforts to reduce cash spending and enhance operational efficiency. The company lowered its cash outflows to $1.04 billion in the third quarter, down from $1.48 billion in the previous quarter, by reducing production, including eliminating the second shift at its Arizona plant, as well as cutting inventory and operating costs.
Chief Financial Officer Alexander de Buck said the measures have begun to yield results, noting that free cash flow consumption declined by 30% quarter-on-quarter during the third quarter.
Lucid also said its headcount fell by approximately 28% between the first and third quarters. The company has achieved $800 million of its targeted $1.4 billion in cash flow improvements this year through reductions in inventory, operating costs, and capital expenditure.
Organizational Restructuring
Lucid’s transformation plan also includes restructuring its management framework, reducing management layers, and linking incentives to four priority projects.
The company also appointed new executives at the beginning of the third quarter, covering technology, finance, customer affairs, and corporate transformation.
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