The funding will provide crucial support for Lucid as it solidifies its position as a leading EV technology company.

In a statement, Lucid CEO Peter Rawlinson expressed his delight at the continued support from the PIF, emphasizing its importance as a key differentiator in accelerating deliveries, reducing costs, and successfully launching the Gravity. The agreement involves Ayar Third purchasing $1 billion in newly created convertible preferred stock.

Lucid plans to utilize the fresh capital infusion for general purposes, including capital expenditures and working capital requirements. Notably, Saudi Arabia's PIF already holds a more than 60% stake in Lucid and has previously invested approximately $5.4 billion in the EV manufacturer since 2018.

The news of the investment follows Lucid's recent announcement that it expects to manufacture around 9,000 vehicles this year, a modest increase from the 8,428 electric vehicles produced in the previous year. The company fell short of its initial delivery target of 10,000 to 14,000 EVs in 2023, highlighting the challenges faced in the competitive market.

Despite reporting a net loss of $653.8 million, Lucid concluded the fourth quarter with over $4.3 billion in cash equivalents and investments. In a bid to boost sales, Lucid has also slashed prices on its 2024 Air EV model.

Lucid aims to reinvigorate its sales momentum with the upcoming launch of its first electric SUV, the Gravity, which is scheduled to enter production later this year. The company hopes the Gravity will help capture the attention of consumers and contribute to its future success in the EV market.

Following the news, Lucid stock experienced a notable 8% increase. However, despite this positive development, LCID shares have declined by over 60% in the past 12 months, reflecting the challenges faced by the company in a competitive market landscape.