Lucid (LCID) has secured a $1 billion investment to launch the Gravity SUV

Electric vehicle startup Lucid (LCID) has secured another $1 billion investment from Saudi Arabia's Public Investment Fund (PIF) Aiyar III Investment Company. The new funding will help support the launch of Lucid's first electric SUV, the Gravity, later this year.

Lucid received a $1 billion investment before launching Gravity

“We are extremely pleased to receive this strong and continued support from PIF, as we work to consolidate our position as the world’s leading electric vehicle technology company,” said Peter Rawlinson, CEO of Lucid.

Lucid announced an agreement With May 3rd on Monday to purchase $1 billion in newly created convertible preferred stock.

Rawlinson described the PIFs' support as a “key differentiator” as it looks to speed up deliveries, cut costs and launch its first electric SUV, Gravity.

Lucid said it will use the new funds for general purposes, including capital expenditures and working capital.

The Saudi Public Investment Fund already owns more than 60% of Lucid shares. Since 2018, the Public Investment Fund has invested about $5.4 billion in the electric car maker.

This news comes after Lucid announced that it expects to build about 9,000 cars this year, only a slight increase from the 8,428 electric cars produced last year.

Lucid's 2023 deliveries were well short of its initial target of 10,000 to 14,000, with just 8,428 electric vehicles delivered last year.

Despite a net loss of $653.8 million, Lucid ended the fourth quarter with more than $4.3 billion in cash equivalents and investments. To boost sales, Lucid also reduced prices for the 2024 Air EV.

Lucid hopes its first electric SUV, the Gravity, can help spark momentum. Gravity is scheduled to enter production later this year.

Lucid stock rose more than 8% on the news, but LCID shares are still down more than 60% over the past 12 months.