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Luxury EV maker Lucid to raise $1 bln from Saudi’s PIF affiliate

March 25 (Reuters) – Lucid (LCID.O), opens new tab said on Monday it is raising $1 billion in capital from an affiliate of Saudi Arabia’s Public Investment Fund (PIF), sending the shares of the luxury electric carmaker up about 8%.

The latest investment by the sovereign wealth fund underscores a key advantage Lucid has in the race for survival among struggling EV startups.

The Saudi government, which has a 60% stake, has invested billions in Lucid’s success as part of a strategy to diversify the Kingdom’s economy beyond oil.

Ayar Third Investment Company, a PIF affiliate, will buy $1 billion in convertible preferred stock and will be able to convert the preferred stock into about 280 million shares, according to a filing with the U.S. securities regulator.

The California-based company, which has been facing weaker-than-expected demand, said it intends to use the proceeds for corporate purposes and capital expenditure, among other things.