Saudi Arabia is pumping a further $1.5 billion into electric vehicle upstart Lucid Group Inc (NASDAQ:LCID).
The country's Public Investment Fund (PIF), already its major shareholder, will provide investment to support the introduction of new models, including the anticipated Gravity SUV set for production later this year.
Saudi Arabia’s government has previously agreed to purchase at least 50,000 Lucid vehicles over the next decade, with an option to buy another 50,000.
The intervention, which follows a US$1 billion investment from PIF in March, secures the luxury EV maker's financial stability until late 2025.
Ayar Third Investment, a PIF affiliate, will purchase $750 million in convertible preferred stock and extend an additional $750 million credit line. Lucid's shares rose 3% in after-hours trading following a 3.9% decline.
Lucid stock got a lift last month when it reported production numbers of 2,110 vehicles and 2,394 deliveries for the second quarter, and reiterated production guidance for the year to manufacture 9,000 vehicles.