As it restructures its business, Lucid has expanded its credit line by $1.75 billions from its largest investor.

Akash Sriram/Abhirup Roy

Reuters, November 9 - Lucid Group (LCID.O) said on Monday that its largest investor, the Public Investment Fund of Saudi Arabia (PIF), raised the company’s loan facility by $1.75 billion. This funding will help the electric vehicle manufacturer sustain operations through the fourth quarter of 2027.

This larger, delayed-draw term loan boosts the company’s simulated liquidity to $3.75 billion, strengthening the position of new CEO Silvio Napoli as he works to turn the company around—Lucid has been facing industry-wide weak demand after the expiration of federal tax credits last year.

The electric vehicle manufacturer said it expects its liquidity will be sufficient to support operations until the launch of its mid-size vehicle in the second half of 2027.

The company’s stock price fell about 5% in after-hours trading.

Lucid reduced outflows for the third quarter to $1.04 billion—down from $1.48 billion in the prior quarter by cutting output, including canceling the second shift at its Arizona plant, and by lowering inventory and operating costs.

“These measures have already started to deliver results in the third quarter, with free cash flow consumption falling by 30% quarter-on-quarter,” said Chief Financial Officer Alexander De Bok.

Lucid said it will provide 2027 guidance and medium-term plans when it releases its year-end results. Earlier this year, during a comprehensive operations review led by the new CEO, the company withdrew its annual production forecast.

During the first to third quarters, the company’s headcount fell by about 28%. Lucid said it has already achieved $800 million of its $1.4 billion cash flow improvement target this year by lowering inventory, operating expenses, and capital expenditures.

The company said its new Chief Technology Officer, Chief Financial Officer, Chief Customer Officer, and Chief Transformation Officer all assumed their roles at the start of the third quarter. Lucid is also streamlining management layers and tying incentives to four priority projects.

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