Lucid Group has entered into an agreement with its largest shareholder, Ayar Investment Company, which is affiliated with the Saudi Public Investment Fund. This deal involves the purchase of a billion-dollar stake in the electric car maker, according to a company disclosure. The news of this agreement caused the American company’s shares to jump 26% in trading before the official market opened in New York.
The agreement is a private placement, which will involve issuing new transferable preferred shares to Aiyar. Peter Rawlinson, CEO and Director of Technology at Lucid Group, expressed gratitude for the strong and continuous support from the Saudi sovereign fund. He emphasized that this support will contribute to the company’s growth and solidify its position as a leading company in the electric vehicle technology sector globally. Rawlinson also mentioned that the company will continue investing in technology and vertical manufacturing integration.
The agreement is subject to the usual procedures for obtaining official approval, as stated in the disclosure. The Group plans to use the net proceeds from the Private Placement for general purposes, including capital expenditures and working capital. Rawlinson highlighted that Lucid is focused on growing its business by accelerating delivery and implementing key initiatives to reduce costs. He mentioned that Lucid is on track to launch its four-wheel drive vehicle, “Gravity,” later this year.
Overall, the agreement with Ayar Investment Company marks a significant milestone for Lucid Group as it seeks to expand its presence in the electric vehicle market. The company’s strategic focus on technology and innovation will continue to drive its growth and success in the industry.
