Lucid Group announced on Monday that Saudi Arabia's Public Investment Fund, the company's largest stakeholder, will provide up to $1.5 billion in capital as the maker of electric vehicles prepares to increase the output of a new SUV.

The EV manufacturer's stock closed down 3.9% during the regular session, but it rose almost 6% in extended trading. The agreement provides Lucid with adequate funding through the fourth quarter of 2025, just in time for the company to begin production of its eagerly anticipated Lucid electric SUV later this year, the Gravity

CEO Peter Rawlinson told a reporter that Lucid would use the money, among other things, for investments in building a factory in Saudi Arabia that would be able to produce 150,000 cars annually and for tooling needed to make the Gravity SUV. Ayar Third Investment has committed to purchasing convertible preferred stock valued at $750 million and offering a credit line of the same amount. This represents the PIF affiliate's second investment of the year.

The $1.5 billion, according to Cantor Fitzgerald senior equity analyst Andres Sheppard, serves to further cement PIF and Lucid's partnership. Some investors expressed concern that the corporation might not make any more promises if the PIF became dissatisfied with them.

He continued, "The PIF's investment has increased to a total of about $8 billion." The sovereign wealth fund owns roughly 60% of the business. Additionally, the business announced second-quarter revenue that exceeded analyst projections thanks to price reductions that boosted sales of its high-end electric sedans in the months of April through June.

In other EV industy news, Lucid reduced the price of its flagship Air sedans by as much as 10% in February in an effort to stimulate sales, which were declining due to customers' preference for more affordable gasoline-electric hybrid vehicles. LSEG data shows that revenue for the second quarter was $200.6 million, as opposed to analysts' projected amount of $192.1 million.