ToyGTone / Wikimedia Commons / CC0
NEWARK, Calif. – Lucid Group said Monday it has increased its PIF-backed delayed-draw term-loan facility by $1.75 billion, extending the electric vehicle maker’s financial runway as it works to cut cash use and bring its midsize vehicle into production next year.
The company reported $2 billion in liquidity at the end of September, or $3.75 billion on a pro forma basis including the expanded loan facility announced Monday. Lucid expects that financing capacity to fund operations and key investments into the fourth quarter of 2027, through the planned start of midsize production.
The $1.75 billion is an increase in borrowing capacity from the Public Investment Fund, not vehicle revenue or a new equity investment. The company’s projected funding runway remains a management forecast.
Lucid’s third-quarter revenue was $350.3 million, compared with $336.6 million a year earlier. Its net loss narrowed to $830.9 million from $978.4 million. The figures cover the three months ended Sept. 30.
Free cash flow consumption, a non-GAAP measure that includes capital spending, fell 30% from the previous quarter to $1.04 billion. The company said it has achieved $800 million in savings toward a $1.4 billion full-year cash flow improvement target. That progress has reduced cash use, but the business continues to consume more than $1 billion a quarter on that measure.
“The operating reset announced with our Q2 results includes decisive actions to align our manufacturing capacity with demand, reduce inventory and lower operating expenses,” Chief Financial Officer Alexander De Bock said.
Lucid said its midsize program remains on course for production in the second half of 2027, with reveal and production dates expected to be announced in the first quarter. Its AMP-2 manufacturing facility in Saudi Arabia has reached the final stages of industrialization and commissioning, with inauguration expected in early 2027.
The company also said it met all milestones scheduled through the third quarter in its robotaxi partnership with Uber and Nuro. That program expanded to more than 100 vehicles on the road in August. A separate partnership with Bolt has an initial goal of deploying at least 25,000 vehicles; that is a target, not a completed fleet.
The loan expansion gives Lucid more room to finance those projects while its cost reductions take effect. The next tests are whether cash consumption continues to fall and whether its factory and midsize vehicle programs meet their schedules. Lucid plans to provide its midterm plan and targets early next year.
Archive photo: a Lucid Air in a Saudi Arabian showroom, photographed in March 2024 and cropped to 16:9. It is not the upcoming midsize vehicle or an image of Monday’s financing announcement.
JBizNews Desk | Newark, Calif.
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