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Key Takeaways
- Electric vehicle (EV) maker Lucid Group announced $1.5 billion in funding commitments from its largest shareholder, a Saudi investment fund affiliate.
- The funding is expected to be used to build an EV factory in Saudi Arabia and to ramp up production of the company’s Gravity SUV.
- Lucid posted a wider-than-expected second-quarter loss late Monday.
Lucid Group (LCID) shares rose Tuesday after the company posted second-quarter results after the bell Monday and announced $1.5 billion in funding commitments from an affiliate of the Public Investment Fund of Saudi Arabia.
This funding from Ayar Third Investment Co., also Lucid’s majority shareholder, will be used to build a factory in Saudi Arabia with the capacity to produce 150,000 vehicles annually, according to a report from Reuters. The funds will also go toward production of the company’s new Gravity SUV, the report said.
Wider Loss Per Share Than Expected
For the second quarter, Lucid posted revenue of $200.6 million, better than analysts’ expectations, and a loss of 34 cents per share, wider than forecasts, according to Visible Alpha.
“I’m very encouraged by our sales and market-share momentum we’re experiencing, the benefits we’re realizing from our cost optimization programs, and the excitement that’s been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year,” Chief Executive Officer (CEO) Peter Rawlinson said in a statement.
Shares of Lucid gained 13% at open Tuesday, but had given back some of their gains in the early afternoon to stand 6% higher at $3.18. The stock is off about 25% so far in 2024.