Saudi PIF Expands Lucid Credit Facility by $1.75 Billion

US electric vehicle manufacturer Lucid has secured a $1.75 billion increase to its credit facility from Saudi Arabia's Public Investment Fund (PIF), its largest investor, bringing the company's pro forma liquidity to $3.75 billion. The financing is expected to support operations through the fourth quarter of 2027.

The expanded facility comes as Lucid implements cost-cutting measures to reduce spending and improve its financial position amid weaker demand for electric vehicles. The company reported $1.04 billion in cash outflow during the third quarter of 2026, down from $1.48 billion in the previous quarter, while Chief Financial Officer Alexander De Bock said free cash flow consumption declined by 30% sequentially.

These improvements followed production adjustments at Lucid's Arizona factory, including the elimination of a second shift, alongside reductions in inventory and operating expenses. The company also reduced its workforce by approximately 28% between the first and third quarters of 2026.

Lucid said it has achieved $800 million of its targeted $1.4 billion improvement in cash flow this year. The restructuring has also included appointments to senior technology, finance, customer and transformation positions.

The additional financing will support Lucid as it prepares to launch its planned midsize electric vehicle in the second half of 2027. The company plans to release its 2027 financial guidance and medium-term business plan alongside its year-end results.