Lucid Group said Monday its largest shareholder, Saudi Arabia's Public Investment Fund, will inject $1.5 billion in cash as the electric carmaker looks to add new models to its lineup.
The company's shares closed down 3.9 percent, but jumped 12 percent in after-hours trading.
The deal comes ahead of production of the long-awaited Gravity SUV later this year, keeping the company adequately funded through the fourth quarter of 2025.
Aiar III Investment Company, a subsidiary of Saudi Arabia’s Public Investment Fund, has agreed to purchase $750 million in convertible preferred shares and provide a similar amount as a line of credit.
The company also reported second-quarter revenue that beat analysts' estimates, as price cuts helped boost sales of its luxury electric sedans during the April-June period.
In February, Lucid cut prices on its Air sedan by up to 10 percent to boost sales as consumers increasingly prefer gasoline-electric hybrids because they are more affordable, especially in light of the current rise in interest rates.
The London Stock Exchange Group reported second-quarter revenue of $200.6 million, compared with analysts' estimates of $192.1 million.
In the same quarter, the company delivered a record 2,394 vehicles, beating market expectations, while market leader Tesla's deliveries fell short of expectations.
Lucid built 3,838 cars in the first half of the year and stuck to its goal of building 9,000 cars by the end of the year.
