Saudi Arabia’s Public Investment Fund is extending another $1.75 billion in credit to Lucid Group, the electric vehicle maker that builds its Air sedan and Gravity SUV in Casa Grande. The deal deepens a relationship that helped Lucid build its Arizona factory and now supports its plans to build a more affordable line of electric vehicles in Saudi Arabia.
Lucid disclosed the Nov. 5 agreement in its third-quarter results. The deal expands an existing loan Lucid can draw on as needed. Counting the additional credit, the company puts its cash, investments and available borrowing at $3.75 billion. Lucid expects those resources to cover operations and planned investments into the fourth quarter of 2027, by which time it expects to have started production of its new midsize vehicles.
The Saudi fund first committed more than $1 billion in 2018 to help Lucid bring the Air to market and build its Casa Grande plant. Its affiliate, Ayar Third Investment Company, is now Lucid’s controlling shareholder and the lender behind the latest deal. In April, Ayar also bought $550 million in Lucid preferred shares.
Saudi Arabia is also a major customer. Under a 10-year agreement, the Saudi government and affiliated buyers committed to purchase 50,000 vehicles, with an option for another 50,000. Sales under that agreement reached $79.4 million in the third quarter, up from $34.3 million a year earlier and accounting for about a quarter of Lucid’s vehicle sales revenue for the quarter.
The relationship also links Lucid’s manufacturing operations in both countries. Its Saudi plant opened in 2023 assembling Lucid Air vehicles from kits made in Casa Grande. Lucid expects to open the expanded Saudi factory in early 2027 and begin building its midsize models there in the second half of the year. Pilot production of the midsize Cosmos is already underway in Coolidge. Lucid has said vehicles in the new lineup will start below $50,000.
The new credit gives Lucid time to bring those vehicles to market while it cuts spending. The company built 2,954 vehicles and delivered 3,806 in the third quarter as it drew down inventory. It used 30% less cash than in the previous quarter and reported $350 million in revenue, up 4% from a year earlier, alongside a net loss of $831 million.
