Lucid Motors gets US$ 1 billion funding from Saudi Arabia; vows to launch its first vehicle by 2020
Lucid Motors, the electric car startup that aims to build an assembly plant in Casa Grande, Arizona, announced an investment agreement US$ 1 billion worth with Saudi Arabia’s Public Investment Fund (PIF), both parts involved announced on Monday.
The transaction represents a major milestone for Lucid and will provide the company with the necessary funding to commercially launch its first electric vehicle, the Lucid Air, in 2020.
Lucid plans to use the funding to complete engineering development and testing of the Lucid Air, build its factory, begin the global rollout of its retail strategy starting in North America, and enter production for the Lucid Air.
The company previously revealed plans to rely on supply chains running down to Sonora, Mexico in order to gain cost competitiveness. In fact, Sonora’s Governor Claudia Pavlovich attended the ground-breaking ceremony, which took place in early 2017.
Ever since the company unveiled the Lucid Air it has been considered one of the closest rivals for Tesla, whose stock dropped by as much as 2% in early trading on news of the investment.
“The convergence of new technologies is reshaping the automobile, but the benefits have yet to be truly realized. This is inhibiting the pace at which sustainable mobility and energy are adopted. At Lucid, we will demonstrate the full potential of the electric connected vehicle in order to push the industry forward,” said Peter Rawlinson, Chief Technology Officer of Lucid in a statement.
A spokesperson for PIF said, “By investing in the rapidly expanding electric vehicle market, PIF is gaining exposure to long-term growth opportunities, supporting innovation and technological development, and driving revenue and sectoral diversification for the Kingdom of Saudi Arabia.”