Lucid secures added liquidity from Saudi investor

Lucid Group Inc. secured access to $1.75 billion in added liquidity from its largest investor, Saudi Arabia’s Public Investment Fund, providing the troubled maker of electric vehicles with additional breathing room to execute its turnaround plan. The PIF agreed to increase an existing credit facility with Lucid by that amount, the EV maker said Nov. 9 as it reported third-quarter results that fell short of analyst estimates. After finishing the third quarter with $2 billion in total liquidity, the company said it now expects to be able to fund operations and investments into next-year’s fourth quarter. The additional support gives CEO Silvio Napoli some additional cushion as he works to reduce cash burn and cut costs at the struggling EV manufacturer. Lucid has slashed its workforce, overhauled leadership positions and put a lid on spending in a bid by Napoli to save $1.4 billion in cash this year. The company has realized about $800 million of that goal so far and is on track to achieve the full year-target, the company said in a statement. Despite the liquidity boost, Lucid’s shares fell after it reported an adjusted loss of $2.30 a share and $350 million of revenue, each of which missed analyst expectations. The stock was down 5% at 4:13 p.m. Nov. 9 in after-hours trading in New York. In an interview, Napoli said the upsized PIF loan is a reflection of the company’s recent progress. “Three months ago, we asked to be judged by the results, and today I’m happy to say we are seeing the first sign of…

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