RIYADH: Electric vehicle maker Lucid Group has expanded an existing credit facility with Saudi Arabia’s Public Investment Fund by $1.75 billion, increasing its pro forma liquidity to $3.75 billion as it seeks to strengthen its finances and advance a business turnaround.

In a statement, the company said the additional financing, up from $2 billion at the end of the third quarter of 2026, would fund operations and key investments through the fourth quarter of 2027.

PIF is Lucid’s largest shareholder, with Prince Alwaleed bin Talal also holding a stake in the company. Lucid is listed on the Nasdaq and operates a manufacturing facility in the Kingdom.

Lucid said the expanded credit facility would provide additional financial flexibility as it implements its transformation program, enabling it to continue investing in key priorities ahead of the launch of its midsize vehicle lineup.

The company also reported progress on its second manufacturing facility in the Kingdom, known as Advanced Manufacturing Plant 2, or AMP-2, saying the project had entered the final stages of industrialization and commissioning, with its inauguration expected in early 2027.

Cash flow improvement plan

The financial support comes as Lucid continues to implement a $1.4 billion cash flow improvement plan, after achieving $800 million in savings since the beginning of the year. The company said it remained on track to meet its annual target.

“Our transformation is beginning to show progress. We are acting with urgency, strengthening the fundamentals, and driving greater discipline, while continuing to invest in the priorities to deliver profitable long-term growth,” said CEO Silvio Napoli.

He added that they are grateful for the “continued financial support from our anchor shareholder, which further energizes us to remain focused on execution and on our commitments as we build a stronger, sustainable Lucid.”

Lucid reported third-quarter revenue of $350 million, up 4 percent year on year, while the US battery electric vehicle market contracted by 41 percent over the same period.

The company also narrowed its gross loss to $258.3 million from $333.6 million a year earlier, as cost of revenue declined to $608.6 million from $670.2 million.

Aligning production capacity with demand

The group reported a 30 percent quarter-on-quarter reduction in free cash flow burn in the third quarter, to $1.04 billion, alongside progress on its cash flow improvement plan.

Cash outflows for purchases of property, plant and equipment increased 44.4 percent to $287.1 million in the third quarter, from $198.8 million a year earlier.

Chief Financial Officer Alexander De Bock said measures announced following the second-quarter results, including aligning production capacity with demand and reducing inventory and operating expenses, had begun to be reflected in the third-quarter performance.

Lucid is counting on its midsize vehicles to drive future growth, with production scheduled to begin in the second half of 2027.

Lucid also reported progress in its autonomy and robotaxi business in its third-quarter results, saying it had achieved all project milestones scheduled through the end of the quarter under its partnership with Uber and Nuro.

“In August, the program expanded to more than 100 vehicles on the road. Lucid also announced a partnership with Bolt, one of Europe’s leading mobility platforms, with an initial goal of deploying at least 25,000 vehicles,” the company said.

The company expects to announce the unveiling and production timelines for the models during the first quarter of next year.