US electric vehicle maker Lucid Motors, majority-owned by Saudi Arabia’s Public Investment Fund (PIF), has raised $1.1 billion in new funding to repay existing debt.
The EV maker has received $1.1 billion through convertible senior notes, debt which can be converted into shares, due in 2030, according to a company statement.
Lucid will use $936 million of the proceeds to repay debt due in 2026, the statement said. The remaining amount will be used for general corporate purposes.
Lucid has been majority-owned by PIF since April 2019. The sovereign fund invested an additional $1 billion in the company in March last year and a further $1.5 billion in August, bringing its total investment to $8 billion for a 58 percent stake.
From almost $39 billion in 2021, the year in which Lucid sold shares to the public in a flotation, PIF’s holding in the Silicon Valley, California-based company has tumbled.
In February Lucid CEO Peter Rawlinson resigned after the company’s accumulated losses rose to almost $13 billion.
Lucid has factories in Arizona and in Jeddah and aims to increase production to 20,000 vehicles this year. Last year, it produced about 9,000 vehicles.
PIF owns shares in 62 US-listed companies, according to its latest regulatory filing.
These include a $4.4 billion stake in the ride-hailing company Uber, a $3.6 billion holding in the video games maker Electronic Arts, and shareholdings in Amazon, PayPal, Microsoft and the semiconductor specialist Arm.
Register now: It’s easy and free
AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East.
Why sign uP
Exclusive weekly email from our editor-in-chief
Personalised weekly emails for your preferred industry sectors
Read and download our insight packed white papers
Access to our mobile app
Prioritised access to live events
Already registered? Sign in
I’ll register later
