Lucid Motors has executed a US$1bn+ investment agreement with the Public Investment Fund of Saudi Arabia (“PIF”), through a special-purpose vehicle wholly owned by PIF (“Transaction”).
Under the terms of the agreement, the parties made binding undertakings to carry out the Transaction subject to regulatory approvals and customary closing conditions.
The Transaction represents a major milestone for Lucid and will provide the Company with the necessary funding to commercially launch its first electric vehicle, the Lucid Air in 2020.
The company plans to use the funding to complete engineering development and testing of the Lucid Air, construct its factory in Casa Grande, Arizona, begin the global rollout of its retail strategy starting in North America, and enter production for the Lucid Air.
In the Press Release, Lucid and PIF claim to be strongly aligned around the vision to create a global luxury electric car company based in the heart of Silicon Valley with world-class engineering talent. Lucid will work closely with PIF to ensure a strategic focus on quickly bringing its products to market at a time of rapid change in the automotive industry.
Public Investment Fund (PIF)
PIF seeks to become one of the largest and most impactful sovereign wealth funds in the world, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.
To achieve this, PIF is building a world-class, diversified portfolio through investments in attractive, long-term opportunities across sectors and asset classes at both the domestic and international level. Working alongside global strategic partners and renowned investment managers, PIF acts as the Kingdom’s main investment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for the Kingdom of Saudi Arabia, in line with Vision 2030.