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EV maker Lucid announces $3 billion raise from Saudi public wealth fund and stock offering

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In an aerial view, a sign is posted on the exterior of Lucid headquarters on March 29, 2023 in Newark, California. Electric vehicle maker Lucid announced plans to lay off 1,300 workers, 18 percent of its workforce, as part of a restructuring plan. 
Justin Sullivan | Getty Images

Lucid Group said on Wednesday that it is raising about $3 billion through a new equity offering, with the majority coming from the Saudi fund that controls the luxury electric-vehicle maker.

Shares of the company fell more than 6% after hours.

Lucid said that about $1.8 billion of the total will come from a private placement of stock with Saudi Arabia’s Public Investment Fund (PIF). The remainder will be raised through a public offering of new shares that commenced Wednesday, the company said.

The PIF owns about 60.5% of Lucid. The new funding round is structured to keep its stake at the same level.

Lucid said it will use the new cash for “general corporate purposes,” including capital expenditures and working capital.

Lucid had about $3.4 billion in cash and about $700 million in available credit lines as of March 31, according to its most recent report.

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