Lucid Group Inc (NASDAQ:LCID), the luxury EV maker, saw its shares pop 8.5% after revealing it is set to receive US$1 billion from the Saudi Arabian Public Investment Fund (PIF).
The PIF owns a 60% stake in Lucid, having poured billions into the company as part of its strategic plan to shift its reliance away from oil.
Ayar Third Investment Company, a group linked to the PIF, will purchase US$1 billion in convertible preferred stock, which can be transferred into around 280 million shares.
Funding will be used for corporate purposes and capital expenditure as the group attempts to deal with weaker-than-expected demand.
Lucid, which is led by a former Tesla executive, is predicting vehicle production to come in at 9,000 in 2024 compared to 8,428 last year.
The PIF investment provides a key boost for the electric vehicle manufacturer, with many EV startups struggling for survival.
Earlier this month, reports revealed Fisker, the EV startup, was nearing bankruptcy, leading to the company issuing a statement in which it said it developing a “strategic partnership with a large automaker.