Luxury electric vehicle manufacturer Lucid is set to raise around $3 billion through a new common stock offering, with the majority of the investment coming from Saudi Arabia's Public Investment Fund (PIF).
The PIF has agreed to purchase over 265 million shares in a private placement for approximately $1.8 billion, with the remaining funds raised through a public offering of common stock.
The net proceeds from the offering will be used for general corporate purposes, according to Lucid. The automaker, which is majority-owned by the PIF, has struggled with mounting losses and missed Wall Street's revenue forecasts for 2022. Lucid has also commenced construction on its first manufacturing facility in Saudi Arabia, with plans to launch two more EV assembly plants in the country.
The Saudi government has committed to buying 50,000 of Lucid's EVs, with an option to purchase an additional 50,000 vehicles over the next decade. The move comes as Saudi Arabia seeks to boost its non-oil economy and reduce carbon emissions by introducing more EVs on its roads by 2030.
