Jump to content
William Maley

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

Recommended Posts

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


View full article

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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. 

  • Upvote 1

Share this post


Link to post
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Social Stream

  • Similar Content

    • By 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
    • By William Maley
      Last week, Tesla CEO Elon Musk revealed that Saudi Arabia's Public Investment Fund (PIF) could help provide the necessary funding to make the company private. But a new report hints that the PIF could invest its money into a different electric automaker.
      Reuters has learned from sources that the PIF is in talks with Lucid Motors about a potential investment. The two have drawn up a term sheet where the PIF could invest more than $1 billion into Lucid Motors and become the majority stakeholder. One source adds that the first investment would only be for $500 million and that subsequent investments would only come if Lucid Motors is able to hit  certain production milestones
      The sources do caution that the talks may not result in a deal.
      Despite the PIF having $250 billion in assets, Reuters says the fund has already made a number of substantial investments into other things such as a $45 billion investment into a giant technology fund. This leaves them with limited funds, which makes the deal with Lucid more appealing. Banks have estimated that Tesla could need up to $72 billion if Tesla pays the $420 per share announced by Musk a few weeks ago. However, the price could drop if current shareholders keep their shares in the private company.
      Lucid Motors made a big splash in 2016 with the introduction of the Air. The model made some big promises such as having the interior space of a Mercedes-Benz S-Class and a max range of up to 400 miles on a charge. Lucid was planning to start production of the sedan this year in Arizona. But last year, the company pushed back production to 2019 as they needed to raise more funds. 
      Source: Reuters

      View full article
    • By William Maley
      Last week, Tesla CEO Elon Musk revealed that Saudi Arabia's Public Investment Fund (PIF) could help provide the necessary funding to make the company private. But a new report hints that the PIF could invest its money into a different electric automaker.
      Reuters has learned from sources that the PIF is in talks with Lucid Motors about a potential investment. The two have drawn up a term sheet where the PIF could invest more than $1 billion into Lucid Motors and become the majority stakeholder. One source adds that the first investment would only be for $500 million and that subsequent investments would only come if Lucid Motors is able to hit  certain production milestones
      The sources do caution that the talks may not result in a deal.
      Despite the PIF having $250 billion in assets, Reuters says the fund has already made a number of substantial investments into other things such as a $45 billion investment into a giant technology fund. This leaves them with limited funds, which makes the deal with Lucid more appealing. Banks have estimated that Tesla could need up to $72 billion if Tesla pays the $420 per share announced by Musk a few weeks ago. However, the price could drop if current shareholders keep their shares in the private company.
      Lucid Motors made a big splash in 2016 with the introduction of the Air. The model made some big promises such as having the interior space of a Mercedes-Benz S-Class and a max range of up to 400 miles on a charge. Lucid was planning to start production of the sedan this year in Arizona. But last year, the company pushed back production to 2019 as they needed to raise more funds. 
      Source: Reuters
  • My Clubs

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...