The Saudi Arabia State Investment Fund (PIF) invests in Lucid Motors.
PIF of Saudi Arabia invests in an American electric mobile startup, Lucid Motors, told the sources of Reuters familiar with the case.
Chief Competing Tesla Elon Musk originally referred to the Saudi Arabian Fund as one of the possible sources of funding for his plan to withdraw Tesla from the stock market. In the meantime, Musk canceled the plan and said that Tesla would remain a listed company.
The discussion between Lucid Motors, which is not a listed company, and PIF shows the current interest of Saudi Arabia in investing in electric cars to diversify its investment portfolio.
The agreement with Lucid Motors would also be more in line with the limited PIF sources of Tesla. Although the fund has $ 250 billion (EUR 215.74 billion) available, it has already negotiated or invested in other technology companies. For example, he entered into an investment agreement of $ 45 billion in a large technology fund led by the Japanese SoftBank Group Corp.
PIF and Lucid Motors outlined a legally binding agreement on terms that would enable the Saudi Arabia Fund to invest more than $ 1 billion in the car and acquire majority share, sources said. The first investment in Lucid Motors would have to be worth $ 500 million and the subsequent cash investments would have to take place in two phases, depending on whether the car manufacturer reaches the production milestones, one of the sources said.
The sources pointed out that the discussions between PIF and Lucid Motors may not lead to an agreement.
Lucid Motors, based in New York, California in 2007, was named Atieva, former vice president and member of Tesla Bernard Tse, and former Oracle Corp and Redback Networks manager Sam Weng. The company received support from Chinese investors, including Jia-tchinga businessman and BAIC's proprietary car manufacturer.
Lucid Motors has not sold any cars yet. In 2016, the company introduced a prototype luxury saloon Lucid Air with a price of $ 100,000. Production will begin at the end of this year. So far it is not clear when the car will be sold, but the company already receives a refundable deposit of $ 2500 on its website.
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