Saudi Arabia invests $1bn in Lucid Motors

Electric car start-up Lucid Motors has announced that it has secured in excess of $1 billion (£760 million) funding from the Public Investment Fund (PIF) of Saudi Arabia. 

This funding allows the brand to complete the required engineering development and testing to produce the Air, an all-electric saloon, due in 2020. It will be built at a new factory – the company's first – to be located in Casa Grande, Arizona. 

The Air will mix sports car handling with the comfort of a luxury saloon, its marketing manager has claimed. It will be the brand's first model, launching first in North America amid a strategy aimed at making Lucid a global luxury electric car company. 

A spokesman for the PIF said: "By investing in the rapidly expanding electric vehicle market, PIF is gaining exposure to long-term growth opportunities, supporting innovation and technological development, and driving revenue and sectoral diversification for the Kingdom of Saudi Arabia." 

The fund aims to bring revenue back into the country in a world moving away from oil, and "aims to strengthen PIF’s performance as an active contributor in the international economy, an investor in the industries of the future and the partner of choice for international investment opportunities. Our investment in Lucid is a strong example of these objectives.”

The initial investment will be $500m (£391m), with subsequent funding coming as Lucid achieves production milestones.