Lucid Group said on November 9 that Saudi Arabia’s Public Investment Fund, its largest investor, has increased its delayed draw term loan facility by 1.75 billion dollars. The amendment was signed on November 5 with Ayar Third Investment Company, a PIF affiliate, and lifts the total facility to about 4.23 billion dollars, of which about 2.13 billion dollars is undrawn, according to Lucid’s quarterly filing.
Lucid ended September with 2.0 billion dollars of total liquidity, down from 3.0 billion dollars at the end of June. The enlarged facility takes pro forma liquidity to 3.75 billion dollars, which the company expects to fund operations and key investments into the fourth quarter of 2027, bridging the period until production of its midsize vehicle begins in the second half of 2027.
The loan matures in August 2029 and carried a weighted average interest rate of 9.59 percent at the end of September. The amendment adds lender controls: Lucid can borrow no more than 750 million dollars until it delivers a 12 month cash flow forecast to the lender, due monthly from January 2027, and it must give ten business days notice before requesting a draw.
The financing came alongside third quarter results and a cost cutting programme under chief executive Silvio Napoli. Lucid cut its third quarter cash outflow to 1.04 billion dollars from 1.48 billion dollars in the previous quarter by cutting production, including eliminating a second shift at its Arizona factory, and reducing inventory and operating costs. Third quarter revenue rose 4.1 percent to 350.3 million dollars, below analyst expectations.
The structure is the story for this beat: a listed electric vehicle maker whose runway is extended not by public markets but by a sovereign shareholder acting as lender of scale, with the credit terms tightening as the exposure grows.