Lucid secures US$1b investment for EV production

Lucid Motors has gained a US$1 billion investment agreement to commercially launch its first electric vehicle, the Lucid Air, in 2020.

The deal has been struck with the Public Investment Fund of Saudi Arabia (PIF), which Tesla hoped to tap after Saudi Arabia bought 5% of Tesla.

Lucid intends using its funding to complete engineering development and testing of the Lucid Air, construct its factory in Casa Grande, Arizona, begin the global rollout of its retail strategy starting in North America, and launch Lucid Air production.

“At Lucid, we will demonstrate the full potential of the electric connected vehicle in order to push the industry forward,” its chief technology officer Peter Rawlinson says.

“The convergence of new technologies is reshaping the automobile, but the benefits have yet to be truly realised. This is inhibiting the pace at which sustainable mobility and energy are adopted.”

Lucid says it will work closely with PIF to ensure a strategic focus on quickly bringing its products to market at a time of rapid change in the automotive industry.

The Lucid Air was revealed at the Los Angeles Auto Show in 2016 and a prototype shown at the Consumer Electronics Show (CES) in Las Vegas in 2017, with the car’s cost expected to start at about US$60,000.

“By investing in the rapidly expanding electric vehicle market, PIF is gaining exposure to long-term growth opportunities, supporting innovation and technological development and driving revenue and sectoral diversification for the Kingdom of Saudi Arabia,” a PIF spokesperson says.

“PIF’s international investment strategy aims to strengthen PIF’s performance as an active contributor in the international economy, an investor in the industries of the future and the partner of choice for international investment opportunities. Our investment in Lucid is a strong example of these objectives.”

PIF aims to become one of the largest sovereign wealth funds in the world, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

PIF’s assets under management aim to increase to over US$400 billion by 2020.