The electric-vehicle manufacturer Lucid Group Inc announced on May 31 that it is securing approximately $3 billion in funding from Saudi Arabia’s Public Investment Fund (PIF) and other sources. This news resulted in a 7% decline in the company’s shares during extended trading.
This is not the first instance of financial support from PIF for Lucid. In March, an entity affiliated with PIF provided a loan of around $266 million to Lucid, followed by a similar amount in April 2022. Additionally, the Saudi Industrial Development Fund, a government-owned entity, extended a loan of approximately $1.4 billion to Lucid in 2022.
The investment from PIF highlights Lucid’s significance as one of the major U.S. investments for the Saudi Arabian sovereign wealth fund. PIF has been entrusted with the responsibility of implementing Saudi Arabia’s ambitious plan to reduce its dependence on oil revenue, making investments in promising sectors such as electric vehicles a strategic move for the fund.
