Lucid Group, the electric vehicle company backed by Saudi Arabia's Public Investment Fund (PIF), recently raised $1.1 billion through the issuance of convertible senior notes. This offering included the full exercise of an option for initial purchasers to acquire an additional $100 million in notes.
The raised funds will strengthen Lucid's financial position and extend the maturity profile of its debt. Part of the proceeds will be used to repurchase approximately $1.05 billion worth of convertible senior notes due in 2026. This is part of the company's strategy to secure its financial future and support its growth plans.
In addition, Lucid reported a 58% increase in deliveries for the first quarter, with 3,109 vehicles delivered, compared to the same period last year. This funding comes shortly after a $1.5 billion investment commitment announced in August 2024 by PIF, underlining continued financial support for the brand.
These moves reflect Lucid's efforts to strengthen its financial structure and enhance its competitiveness in the global electric vehicle market.Lucid Group, Inc., the electric vehicle manufacturer backed by Saudi Arabia's Public Investment Fund (PIF), has recently taken significant financial steps to strengthen its market position.
Convertible Senior Notes Offering:
Amount Raised: Lucid successfully closed a $1.1 billion offering of convertible senior notes due in 2030. This includes the full exercise of an option for initial purchasers to acquire an additional $100 million in notes.
Use of Proceeds: Approximately $935.6 million of the net proceeds will be used to repurchase about $1.05 billion in outstanding 1.25% convertible senior notes due 2026.
First Quarter Deliveries and Production:
Vehicle Deliveries: In Q1 2025, Lucid delivered 3,109 vehicles, marking a 58% increase compared to the same period in the previous year.
Production Figures: The company produced 2,212 vehicles during the quarter, with an additional 600 units in transit to Saudi Arabia for final assembly
Stock Performance Amid Market Challenges:
Stock Price Movement: Despite the delivery record, Lucid's stock experienced a 3.3% decline to $2.32, influenced by broader market concerns and company-specific factors, including new tariffs announced by President Trump.
Additional Investment from PIF:
Funding Details: In August 2024, Lucid received a $1.5 billion investment from Ayar Third Investment Co., an affiliate of PIF. This investment comprises $750 million in convertible preferred stock and a $750 million unsecured loan.