Lucid, the luxury electric vehicle manufacturer, announced a significant capital infusion today from their main shareholder. The company has secured a $1 billion investment from Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund (PIF). This deal will see Ayar Third Investment Company purchase convertible preferred shares in Lucid. This private placement is subject to standard closing procedures.
The news has bolstered Lucid’s stock, resulting in a 4% increase during after-hours trading. This investment signals continued support from the Saudi PIF, which is already a major shareholder in Lucid. The fresh funding will bolster Lucid’s efforts to expand production and compete in the increasingly competitive electric vehicle market. Lucid plans to use the funds for various general business purposes, including investments in manufacturing and ongoing operations.
The new convertible preferred stock is exempt from registration under Regulation D’s Section 4(a)(2) of the Securities Act of 1933.
Industry Implications: Saudi Arabia’s investment highlights the growing interest in electric vehicles from governments and investors seeking to reduce carbon emissions. This substantial funding could accelerate technological advancements in the EV sector.
A spokesperson from Lucid Says “This investment reaffirms PIF’s commitment to Lucid and our mission to create the most advanced electric vehicles on the market. This funding will be crucial in fueling our growth and innovation.”
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