Shares of electric vehicle maker Lucid Motors (NASDAQ:LCID) surged nearly 25% in early trading on Friday, after CEO Peter Rawlinson's comments sent the stock soaring.

The CEO confirmed that the partnership with the Saudi Public Investment Fund remains strong, and that the support the company receives from the fund helps it expand its business.

Lucid shares ended Friday's trading up 25% to close at $4.25, having gained about 59% over the past month.

The company's stock had surged earlier last week after reporting better-than-expected vehicle delivery figures, amid signs of continued strong support from the Public Investment Fund, boosting the company's operating outlook.

The perfect partner

In an interview with Bloomberg, Rawlinson described Saudi Arabia's Public Investment Fund as the ideal partner for Lucid, and confirmed that production of the company's Gravity SUV is set to begin later this year.

Rawlinson noted that the development partnership with Aston Martin remains strong. Aston Martin Lagonda is collaborating with Lucid on electric vehicle technology, combining the British marque’s cutting-edge technology with a relative newcomer to the automotive world, both backed by Saudi Arabia’s Public Investment Fund (PIF).

Saudi Arabia’s Public Investment Fund currently owns over 60% of Lucid and has been a major source of funding for the company. Lucid aims to establish itself as a major player in the electric vehicle market.

On March 25, Lucid signed a deal to receive $1 billion from a subsidiary of Saudi Arabia’s Public Investment Fund, with Mayer III Investment Company, a subsidiary of the sovereign wealth fund, buying $1 billion in convertible preferred stock.

What is expected for the company's profits?

Lucid announced earlier this week that it produced 2,110 vehicles and delivered 2,394 in the second quarter. The company also said it will release its second-quarter results at a conference call after the market closes on Aug. 5.

The company in May forecast capital spending of $1.5 billion in 2024, up from $910.6 million last year, as it prepares to start production of its Gravity SUV.

In May, Lucid confirmed its annual production forecast of 9,000 cars in 2024, compared to the 8,428 cars it made last year.

In the same vein, the chart below, available exclusively on Investing Pro, shows the trend in analyst revenue expectations for Lucid for the next quarter. Analysts have lowered their revenue expectations this quarter by -65.0% from 497.9 million per share to 174.2 million per share over the past 12 months. The company is expected to report Q2 2024 earnings on July 31, 2024.