(Reuters) – Lucid Group said on Monday a $1.75 billion increase in a loan facility from Saudi Arabia’s Public Investment Fund (PIF), its largest investor, would help fund the electric-vehicle maker into the fourth quarter of 2027.
The larger delayed-draw term loan lifts the company’s pro forma liquidity to $3.75 billion, strengthening new CEO Silvio Napoli’s hand as he seeks to turn around the company facing an industry-wide demand weakness following the expiry of a federal tax credit last year.
The EV maker said it expects its liquidity to fund operations until production of its midsize vehicle begins in the second half of 2027.
The company’s shares were down about 5% in extended trading.
Lucid cut its third-quarter cash outflow to $1.04 billion from $1.48 billion in the previous quarter by cutting production, including eliminating a second shift at its Arizona factory and reducing inventory and operating costs.
“These actions are already showing through in Q3, with free cash flow consumption 30% lower sequentially,” CFO Alexander De Bock said.
Lucid said it would provide 2027 guidance and a mid-term plan with its year-end results. It had withdrawn its annual production forecast earlier this year amid a sweeping operational review by its newly appointed CEO.
The company said headcount fell about 28% between the first and third quarters. It said it had achieved $800 million of a targeted $1.4 billion cash flow improvement this year through lower inventory, operating costs and capital spending.
New chief technology, finance, customer and transformation officers joined early in the third quarter, the company said. Lucid is also cutting management layers and tying incentives to four priority projects.
