Lucid expands credit line from top investor by $1.75 billion amid turnaround
LCID•Lucid Group said a $1.75 billion increase in a loan facility from its largest investor, Saudi Arabia's Public Investment Fund, lifts pro forma liquidity to $3.75 billion and is expected to fund operations into the fourth quarter of 2027.
1. Credit facility expanded
Lucid Group said the $1.75 billion increase to its delayed-draw term loan from the Public Investment Fund would help fund the electric-vehicle maker into the fourth quarter of 2027. The company expects its liquidity to cover operations until production of its midsize vehicle begins in the second half of 2027.
2. Cash flow and cost cuts
Lucid reduced its third-quarter cash outflow to $1.04 billion from $1.48 billion in the previous quarter by cutting production, eliminating a second shift at its Arizona factory, and reducing inventory and operating costs. CFO Alexander De Bock said free cash flow consumption was 30% lower sequentially. The company said headcount fell about 28% between the first and third quarters, and it achieved $800 million of a targeted $1.4 billion in cash flow improvements this year.
3. Turnaround plans
Lucid said it would provide 2027 guidance and a mid-term plan with its year-end results. It withdrew its annual production forecast earlier this year during an operational review by its newly appointed CEO.
