Lucid Taps Saudi Credit Line Again, Leaving Just $400 Million
Company Background
Lucid Group makes premium electric vehicles at its AMP-1 factory in Arizona and an expanding AMP-2 facility in Saudi Arabia. The Saudi sovereign wealth fund — the Public Investment Fund, through its subsidiary Ayar Third Investment Company — is the company's majority shareholder and has been its primary external capital source since before Lucid went public.
The company has never generated positive free cash flow. In the first half of 2026, operating cash burn totaled $2.4 billion, and free cash outflow reached $2.9 billion after capital expenditures. Revenue grew sharply year-over-year — reaching $405 million in Q2 2026, up 56% — but cost of revenue remained more than double revenue, and the GAAP net loss for Q2 alone was $1.03 billion. Lucid carries three series of PIF-backed redeemable convertible preferred stock with combined liquidation preferences exceeding $3 billion, as well as $975 million in 7.00% convertible notes due 2031.
The company hired Silvio Napoli as CEO in April 2026 and launched what it called an operational reset, targeting $1.4 billion in cash flow improvements in 2026. Two rounds of U.S. workforce reductions — approximately 12% in February and 18% in June — accompanied the reset. The CFO departed in September, and a new CFO, Alexander De Bock, joined in July.
What Was Disclosed
Lucid drew $400 million from its Delayed Draw Term Loan facility on October 6, 2026. Ayar Third Investment Company, an affiliate of the Public Investment Fund, is the lender. Following the draw, the aggregate principal outstanding under the DDTL is approximately $2.1 billion, with approximately $400 million of borrowing capacity remaining.