Saudi Arabian fund in talks to invest up to US$1 billion in Lucid Motors
The Saudi Arabian sovereign wealth fund PIF is in talks to invest in Lucid Motors Inc, an electric car developer that aims to build an assembly plant in Arizona supported by the automotive supply chain from Sonora, Mexico.
Both parties have drawn up a term sheet under which PIF could invest more than US$1 billion in Lucid Motors, according to a report by Reuters citing as sources people familiar with the matter.
The first investment would be for US$500 million, with subsequent cash injections coming in two stages which would be subject to certain production milestones, one of the sources added. The talks may not result in a deal, the sources cautioned.
In January 2017, the company announced plans to build a manufacturing plant in Casa Grande, supported by a supply chain that would run down to Sonora, Mexico. The initial announcement came with a proposal of approximately 2,000 new jobs and a new curriculum for the Advanced Manufacturing Technology Program at Central Arizona College. However, since the announcement the company has seemed to have a difficult time securing financing.
Back in 2016, Lucid Motors unveiled a prototype of its Lucid Air model, a US$100,000 luxury sedan it had hoped to begin building in Arizona in late 2018. It is not clear when this car will become available, though the company is accepting refundable deposits of US$2,500 on its website.