Industry News: Lucid Motors and Saudi Arabia's PIF Sign An Investment Agreement

[William Maley]

Last month, we reported on a rumor that that Saudi Arabia's Public Investment Fund (PIF) was in talks about possibly providing funding to electric car start-up Lucid Motors. The fund would provide an initial investment of $500 million, but would expand it to a billion if certain milestones were met.

This morning, Lucid Motors announced that it signed an agreement with the PIF totaling over $1 billion, subject to necessary regulatory approvals. If given the go-ahead, Lucid will use the money to finish building their plant in Arizona, complete development on Air, and begin production by 2020.

“By investing in the rapidly expanding electric vehicle market, PIF is gaining exposure to long-term growth opportunities, supporting innovation and technological development, and driving revenue and sectoral diversification for the Kingdom of Saudi Arabia,” said a spokesman for the PIF.

The PIF made headlines last month when Tesla CEO Elon Musk revealed the fund as being the provider for the automaker to go private. This was based on discussions between the two, along with the fund purchasing a small stake. But as we reported later in the month, officials at the fund were not so keen on this idea.

Source: Lucid Motors

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[G. David Felt]

Very cool, hope it all goes forward.

[frogger]

Yuck, I would not cheer any business with an awful place like Saudi Arabia..

 

[riviera74]

An electric start up receiving investment funds from a sovereign investment fund built on oil revenues.  That is weird indeed.  You would think that the Saudis would find a way to increase oil consumption rather than reduce it.

[G. David Felt]

3 hours ago, riviera74 said:

An electric start up receiving investment funds from a sovereign investment fund built on oil revenues.  That is weird indeed.  You would think that the Saudis would find a way to increase oil consumption rather than reduce it.

They are on the back end of their oil reserves and must diversify for the long term wealth of their country. Right now going into other technology is the smartest thing they can do.

[Drew Dowdell]

17 hours ago, riviera74 said:

An electric start up receiving investment funds from a sovereign investment fund built on oil revenues.  That is weird indeed.  You would think that the Saudis would find a way to increase oil consumption rather than reduce it.

The Saudis are one of the few out there that sees the writing on the wall with regard to fossil fuels.  With an economy so heavily invested in oil they are working feverishly.... no... frantically... to diversify their economy.  They're trying to open up to tourism by building brand new resort cities on their south eastern coast. They are now allowing women to drive. They are working on solar and electric car projects. They are getting deep into banking and foreign real estate.   I may not agree with them on most things... but they know what's up and are planning ahead.