Lucid Motors has recently received a significant boost in its overall financial health by raising $1 billion in its funding round. The major chunk comes from the largest financial supporter of the company, Saudi Arabia. The primary purpose of this investment is to make sure that Lucid is able to address multiple issues regarding the high costs associated with the development and selling of electric sedans, the premium product. Thus, this significant money will make sure that the company can thrive successfully in this highly competitive world.
Major Funding Source
Saudi Arabia is already holding the ownership rights of 60% of the stocks of Lucid. Thus, it is a major contributor to the progress of the company. The Public Investment Fund, more often termed PIF, has shown interest in purchasing more stocks that are of the significant worth of $1 billion. This investment will ultimately boost the country’s existing rights in the company which will further take it to an advanced level.
Financial Aspects of Lucid
Recently, Lucid has faced multiple challenges related to its financial aspect as it has experienced a loss of $2.8 billion in 2023. Although it was a major setback, the company still managed to end the last financial year with $1.4 billion. The automaker enterprise has launched the funding round to attract buyers who are interested in purchasing high-end Air sedans. Also, Lucid has implemented a price cut strategy in recent months that has benefited the company quite effectively to recover the loss. Moreover, it is planning to increase the production status of its electric “Gravity SUV” by the end of this year.
Saudi Arabia’s Role in Lucid
TechCrunch has announced the details regarding Saudi Arabia’s funding details in the company. Lucid is relying heavily on the investment coming from the country is a topic of discussion for an extended duration because of its both positive and negative aspects. The CEO of the company Peter Rawlinson has expressed her thoughts on relying too much on the PIF’s wealth. While he has appreciated the efforts of the enterprise toward Lucid, it is also necessary to look forward to diversifying the resources to bring financial stability and sustainability to the company’s wealth.
Future Prospects
The latest funding from Saudi Arabia has opened the doors to an incredible opportunity for the growth of the company. Moreover, Lucid is on its way to becoming one of the top EV startups in this highly competitive landscape. As the luxury EV market is evolving at a rapid pace, this enormous investment will prove immensely beneficial for the sustained development of the enterprise. Moreover, Lucid is looking forward to diversifying its financial resources to deal with all kinds of potential challenges.
