Saudi-Backed Lucid Gears Up for Expansion with $1.5B Boost and an Eye on New Electric SUVs

Lucid Group revealed on Monday that they will receive a financial boost of up to $1.5 billion from the Saudi Arabian Public Investment Fund (PIF), which holds the majority stake in the company.

According to Reuters, the agreement ensures that Lucid has enough financial resources until the final quarter of 2025. This financial assurance arrives as Lucid looks to expand its product range beyond the Air model. Back in 2018, the Public Investment Fund (PIF) invested $1 billion in Lucid, a move that was instrumental in kickstarting the production of the Air sedan.

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Reuters has indicated that Lucid surpassed revenue forecasts for the second quarter, attributing the boost to a rise in Air model purchases which followed price reductions. Earlier in the year, Lucid implemented discounts of as much as 10%, positioning its entry-level Air Pure at a more competitive price point than the Tesla Model S.

The financial boost is expected to assist Lucid in commencing the manufacturing of its Gravity SUV. This second vehicle model from the carmaker was revealed at the 2023 Los Angeles auto show, with intentions to kick off manufacturing before the year ends. Following a quick preliminary test drive of the prototype, we deduced that the Gravity has the potential to blend elements of SUVs, minivans, and wagons, challenging traditional vehicle categories.

Preview glimpse of the Lucid Project Midsize – Image courtesy of John Voelcker

In the beginning of the year, Lucid hinted at the development of a new, slightly more compact electric SUV, expected to be comparable in size to Tesla's Model Y, and referred to as "Project Midsize." During that period, CEO Peter Rawlinson revealed that they had already constructed prototypes for engineering purposes. Moreover, according to Reuters, Lucid aims to release this upcoming model around the year 2026.

At the inauguration of Lucid's Casa Grande, Arizona plant's expansion, the company revealed a new compact electric SUV. Lucid states that the factory's enlargement to 3 million square feet is a fourfold increase in size. This expansion paves the way for increased production of both the upcoming Gravity SUV and the existing Air model, ahead of the launch of a third vehicle in their lineup.

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