INSUBCONTINENT EXCLUSIVE:
Saudi Arabia sovereign wealth fund is investing $1 billion into Lucid Motors, capital that will finance the commercial launch of the
startup first electric vehicle.The agreement comes just six weeks after Tesla CEO Elon Musk tweeted that he was considering taking Tesla
private at $420 a share and had secured the proper funding to make the leap
Musk suggested that Saudi wealth fund, which already owns almost 5 percent of Tesla stock, was interested in backing the company move from
public to private.Tesla board and Musk have since quashed those plans to go private.The investment came at a crucial moment for Lucid
Motors, which has struggled recently toraise the funds needed to produce its luxury EV, the Lucid Air
The funding will be used to complete engineering development and testing of the Lucid Air, construct its factory in Casa Grande, Arizona,
begin the global rollout of its retail strategy starting in North America and enter production, the company said.Lucid Motors was founded 10
years ago with a different name and mission
The company, called Atieva at the time, was focused on developing electric car battery technology
It then shifted to producing electric cars and changed its name in 2016.The company seemed to have momentum at the time
Lucid Motors had successfully raised money, unveiled the Air, announcedplans to build a $700 million factory in Arizona, signed adeal with
Samsung SDIto supply it with lithium-ion batteries and moved intospacious new digs
But building a factory is expensive, and the company fell silent for nearly a year as it sought funding to produce the Air.It also a notable
investment for the Saudi kingdom, which under its Vision 2030 plan is seeking to diversify its economy away from fossil fuels
In the past year, the SaudiPublic Investment Fund has invested in renewable energy, established and developed recycling companies and energy
efficiency services, the kingdom noted in a release.
