Lucid Group mentioned on Monday its largest shareholder, Saudi Arabia’s Public Funding Fund, will inject as much as $1.5 billion in money, as the electrical car maker seems to be so as to add new fashions to its product line.
The EV maker’s shares, which closed down 3.9%, jumped 12% in prolonged buying and selling.
The deal comes simply forward of Lucid’s deliberate manufacturing of its much-awaited Gravity SUV later this yr and retains the EV maker sufficiently funded until the fourth quarter of 2025.
Ayar Third Funding, an affiliate of PIF, has agreed to purchase $750 million price of convertible most popular inventory and supply the same quantity as a credit score line.
The corporate additionally reported second-quarter income above analysts’ estimates as worth cuts helped drive larger gross sales of its luxurious electrical sedans through the April-June interval.
In February, Lucid reduce costs of its flagship Air sedans by as much as 10% to reignite gross sales as shoppers more and more opted for extra budget-friendly gasoline-electric hybrid automobiles in response to prevailing excessive rates of interest.
Income for the second quarter was $200.6 million, in contrast with analysts’ estimate of $192.1 million, in keeping with LSEG information.
In the identical quarter, the corporate delivered a report 2,394 automobiles, beating market expectations, whereas market chief Tesla reported a smaller-than-expected decline.
Lucid made 3,838 automobiles within the first half of the yr and caught to its goal of constructing 9,000 models by the top of the yr on Monday.
Lucid is gearing as much as increase its product line with a extra reasonably priced mid-size automotive anticipated to roll out in late 2026.
On an adjusted foundation, it reported a lack of 29 cents per share, wider than analysts’ common estimate of a lack of 27 cents.
It ended the second quarter with money and money equivalents of $1.35 billion, in contrast with $1.37 billion on the finish of 2023.
