Saudi Arabia is giving Lucid Motors even additional funding as the electric vehicle startup tries to cover its losses. An affiliate of the Saudi sovereign wealth fund is contributing an additional $1.5 billion, of which half will come from a private placement and the other half from a lending facility, Lucid said on Monday as part of its second-quarter earnings release.
The agreement strengthens the relationship between Lucid and its main owner, who has promised to purchase at least 50,000 of the company’s electric vehicles in the upcoming years and is assisting in the construction of a brand-new plant in the Kingdom.
This is the second time that Lucid has looked to Saudi Arabia for more funding since CEO Peter Rawlinson expressed concern about being overly dependent on the Kingdom’s sovereign wealth fund to the Financial Times in an interview from March 2024. He told the financial publication, “I respect them far too much for that. If I adopt a mindset that there is bottomless wealth from PIF, that is very dangerous, that is something I will never do.”
The announcement of the additional capital coincides with Lucid’s announcement that, despite breaking sales records and earning $200 million in revenue from its electric luxury automobiles, the company lost $643 million in the second quarter of 2024. According to Lucid, its cash and cash equivalents at the end ofThe funding infusion, according to Rawlinson, is a “resounding further endorsement” of Saudi Arabia’s sustained commitment to Lucid.
Rawlinson stated, “We are so aligned, this transcends a mere financial arrangement,” on Monday during the business’s results call. We are honored to be a part of Saudi Arabia’s ambitious Vision 2030, which aims to transform the country’s business to contribute to a sustainable economy.Furthermore, he refuted the notion that Saudi Arabia was losing interest. “It’s a common depiction; when will Saudi Arabia grow tired of Peter tinkering with his cars?” he wondered. It’s not like we don’t talk to each other on a regular basis. My chairman, Turqi Alnowaiser, and I are fully dedicated to each other. You know, Peter keeps things on track a lot more in this exchange. We want these items, and we want this midsize. Does Gravity have a course?Although Lucid’s overall second-quarter revenue numbers indicate year-over-year growth over a quarter and six-month period,
a closer examination of the outcome indicates Saudi Arabia’s sway.
Regionally, Lucid produced $155 million in revenues in North America during the second quarter, a 12% rise over the same time previous year. Comparing results from the first half of the year, however, revenue from North American sales decreased. During the first half of the year, Lucid recorded revenue from North American sales of $269.8 million, a 5.7% decline from the $286.2 million from the same time in 2023.What brought that difference closer was sales in Saudi Arabia. In the first half of 2024, Saudi Arabia’s sales revenue soared 14 times to $95.2 million compared to the same period the previous year.
In order to stop the bleeding and try to establish a market for its high-end sedan, the Air, Lucid needs more than just money. Additionally, it needs funding for the impending release of Gravity, its first electric SUV. Given the popularity of the form factor in the region, Lucid has stated that the Gravity will go into production by the end of 2024 and has placed its hopes on it succeeding in North America. Approximately 400 workers, or about 6% of the company’s total employment, were let go inGreetings from TechCrunch comments! Please be kind and stick to the topic of the conversation. You might see comments from our Community Managers, who will be identified by a “TechCrunch Staff” or “Staff” label, in an effort to promote civil and fruitful dialogues. After an article has been up for three days, we close comments to ensure the best possible user experience. Comments are open for discussion on TechCrunch’s Conversations message boards for ever. Refer to our community guidelines for further details.
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Startups Weekly: TechCrunch’s core focus is startups, so receive our finest coverage every week.The announcement of the additional capital coincides with Lucid’s announcement that, despite breaking sales records and earning $200 million in revenue from its electric luxury automobiles, the company lost $643 million in the second quarter of 2024. At the conclusion of the second quarter, Lucid reported having $1.35 billion in cash and cash equivalents.
The funding infusion, according to Rawlinson, is a “resounding further endorsement” of Saudi Arabia’s sustained commitment to Lucid.
Rawlinson stated, “We are so aligned, this transcends a mere financial arrangement,” on Monday during the business’s results call. We are honored to be a part of Saudi Arabia’s ambitious Vision 2030, which aims to transform the country’s business to contribute to a sustainable economy.Lucid doesn’t just need money to staunch the bleeding as it tries to carve out a market for its luxury sedan, the Air. It also needs capital to help with the upcoming launch of its first electric SUV, known as Gravity. Lucid has said the Gravity will enter production by the end of 2024 and has put its hopes on it becoming a success in North America given the popularity of the form factor in the region. The company laid off about 400 employees, or roughly 6% of its workforce, in May 2024 as part of a restructuring ahead of the launch of the Gravity SUV.The agreement strengthens the relationship between Lucid and its main owner, who has promised to purchase at least 50,000 of the company’s electric vehicles in the upcoming years and is assisting in the construction of a brand-new plant in the Kingdom.