Electric Automaker Lucid Motors Announces $1 Billion Investment from Saudi's PIF

author: Eric Walz   

Saudi Arabia's Public Investment Fund (PIF) has agreed to invest over $1 billion in California-based luxury electric automaker Lucid Motors, a startup looking to rival Tesla with a ultra-luxurious car called the Air.

The funding will enable Silicon Valley-based Lucid to achieve the commercial launch of the Air in 2020, PIF said as it announced the deal on Monday. The Lucid investment is to be over $1 billion, according to Reuters, but the fund did provide an exact amount.

"By investing in the rapidly expanding electric vehicle market, PIF is gaining exposure to long-term growth opportunities, supporting innovation and technological development and driving revenue and sectoral diversification for the Kingdom of Saudi Arabia," a PIF representative said.

The Saudi Arabian Public Investment Fund (PIF) was established in 1971 to provide financing support for projects of strategic significance to the national economy. The PIF invests in the fields of telecoms, aerospace and green technologies, such as electric cars, with a focus on renewable energy and information technology.

The PIF fund is also a major investor in ride-hailing giant Uber. In June 2016, the fund acquired an approximate 5 percent stake in Uber with an investment of $3.5 billion, the largest ever single investment in the App-based ride sharing company.

Based in Newark, California, Lucid Motors was founded in 2007 as Atieva by Bernard Tse, a former Tesla vice president and board member, and Sam Weng, a former executive at Oracle Corp and Redback Networks. Lucid's chief technology officer is Peter Rawlinson, a former Tesla vice president and chief engineer on the Model S.

Peter Rawlinson (left), showing off the Lucid Air at a company event in Dec 2016

According to Lucid, ten years of battery pack development have led to best-in-class energy density for an electric car. The company claims the Air is capable of reaching 0 to 60 mph in less than 2.5 seconds while delivering 400 miles of range.

The Air features a panoramic glass roof and a luxury interior inspired by executive jets with reclining rear seats. The Air will also come with hardware to support autonomous driving.

The funding, which will be made through a special-purpose vehicle wholly owned by PIF, will be used by Lucid to complete development and testing of the Lucid Air, construct a factory in Arizona and start production of the Air.

The Lucid Air made its public debut at the New York International Auto Show in April 2017. Lucid says the car is smaller than a Tesla Model S, but offers as much interior space as a large Mercedes S-class sedan. The automaker has big plans for its first electric car.

"The convergence of new technologies is reshaping the automobile, but the benefits have yet to be truly realized," Peter Rawlinson, Lucid's chief technology officer, said to Reuters.

"This is inhibiting the pace at which sustainable mobility and energy are adopted. At Lucid, we will demonstrate the full potential of the electric connected vehicle in order to push the industry forward."

Lucid Motors is joining a growing list of electric vehicle startups looking to rival Tesla with a luxury electric vehicle. Other companies include SF Motors, Faraday Future and Fisker Inc.

Eric Walz

Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.