Electric vehicle maker Lucid Group has gained access to an additional $1.75 billion in funding from Saudi Arabia’s Public Investment Fund (PIF). The money comes through an increase to an existing credit facility, a move that strengthens the company’s financial flexibility as it carries out its business turnaround plan.
In a statement on Monday, the company said the additional funding lifts its total pro forma liquidity to $3.75 billion, up from $2 billion at the end of the third quarter of 2026. That gives it enough to fund its operations and key investments through the fourth quarter of 2027.
PIF is Lucid’s largest shareholder, and Prince Alwaleed bin Talal also holds a stake. The Nasdaq-listed company has a manufacturing plant in Saudi Arabia.
Lucid said the expanded facility gives it more financial flexibility during its turnaround program. It will let the company keep investing in its main priorities through to the start of production of its midsize models.
The company also reported progress on its second plant in Saudi Arabia. The project is now in the final stages of industrial fit-out and commissioning and is expected to open in early 2027.
Cash Flow Improvement Plan
The new financial support comes as Lucid continues a $1.4 billion plan to improve its cash flow. It has saved $800 million so far this year and says it remains on track to hit its annual target.
CEO Silvio Napoli said the turnaround is starting to deliver results. He added that Lucid is strengthening the foundations of its business and raising discipline while continuing to invest in the priorities that will drive profitable long-term growth.
Lucid reported third-quarter revenue of $350 million, up 4% year-on-year. Over the same period, the US battery electric vehicle (BEV) market fell 41%.
Aligning Production Capacity with Demand
The company said its free cash flow consumption fell 30% quarter-on-quarter to $1.04 billion in the third quarter, as the cash flow improvement plan moved forward.
CFO Alexandre de Bock said the measures announced after the second-quarter results are now showing up in the third-quarter numbers. Those measures include aligning production capacity with demand and cutting inventory and operating expenses.
Lucid is relying on its midsize models to drive growth and plans to begin producing them in the second half of 2027. It expects to announce dates for unveiling the models and for the start of production during the first quarter of next year.
