(MENAFN) Lucid Group announced on Monday that it has secured a significant USD1.5 billion investment from its largest shareholder, Saudi Arabia's Public Investment Fund (PIF), as part of its strategy to expand its electric vehicle lineup. The investment will come through Aiar III Investment Company, a PIF subsidiary, which will purchase USD750 million in convertible preferred shares and provide an equivalent amount as a line of credit. Despite a 3.9 percent drop in Lucid's shares on the announcement day, the stock surged by 12 percent in after-hours trading. This funding is crucial as the company prepares to launch its highly anticipated Gravity SUV later this year and aims to remain financially robust through to the end of 2025.

Lucid's second-quarter financial performance surpassed analysts' expectations, driven by price reductions on its luxury Air sedan. The company reported that lower prices helped to increase sales during the April-June period. This follows a 10 percent price cut earlier in the year, aimed at attracting buyers amid a growing preference for more affordable gasoline-electric hybrids and rising interest rates. The London Stock Exchange Group's second-quarter revenue was reported at USD200.6 million, exceeding the forecast of USD192.1 million, highlighting the positive impact of Lucid’s pricing strategy.

In terms of production, Lucid delivered a record 2,394 vehicles in the second quarter, exceeding market expectations and outperforming industry leader Tesla, which fell short of delivery targets. For the first half of the year, Lucid manufactured 3,838 cars and reaffirmed its commitment to building 9,000 cars by the end of the year. This investment and production performance underscore Lucid's strategic focus on scaling operations and expanding its market presence in the competitive electric vehicle sector.

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