Lucid said on Monday that it drew $800 million from its delayed-draw term loan facility on July 6, tapping its Saudi backer for the second time this year as the EV maker restructures under a new chief executive and burns through cash.
The funds came from an existing credit agreement with Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund and Lucid‘s controlling shareholder.
The company disclosed in a filing that the draw converts committed but previously undrawn capacity into term-loan debt and introduces no new terms, incorporating the conditions set out in earlier filings.
Following an initial $500 million draw on April 1, the July borrowing lifts Lucid‘s outstanding balance under the facility to about $1.3 billion, leaving roughly $1.2 billion of the approximately $2.5 billion line undrawn.
An Expensive, Twice-Expanded Line
The facility dates to a credit agreement Lucid signed with Ayar on August 4, 2024, for an unsecured delayed-draw term loan of $750 million, maturing on August 4, 2029.
Interest runs at the company’s option, at either the Term SOFR rate plus 5.75% or an alternate base rate plus 4.75%, an elevated spread that reflects Lucid‘s weak standalone credit.
The agreement lets Lucid pay that interest in kind rather than in cash, adding it to the loan balance, a feature that preserves cash during the company’s loss-making production ramp but compounds the debt over time.
The arrangement carries the marks of patient, related-party capital, with repayment due only at the 2029 maturity and terms an arm’s-length lender would be unlikely to extend to a company burning cash at Lucid‘s rate.
Lucid also pays a quarterly fee of 0.50% a year on the unused portion, and the loan is guaranteed by the company and certain domestic subsidiaries.
Proceeds will be used for working capital and general corporate purposes, funding a build-out that spans Lucid’s Arizona plant, a factory in Saudi Arabia, its retail and service network, and vehicle programs including the Gravity SUV and a coming midsize model.
The line has since doubled twice.
A November 2025 amendment raised the commitment to about $2.0 billion, carrying a 0.75% upfront fee on the increase, and a second amendment in April 2026 lifted total outstanding and undrawn commitments to roughly $2.5 billion.
The April amendment also loosened the terms materially, eliminating a $1 billion minimum-liquidity covenant and removing a requirement that Lucid fully draw its asset-based revolving facility before borrowing under the term loan.
Deepening Reliance on the PIF
The draw underscores how dependent Lucid has become on its Saudi shareholder.
Ayar and the Public Investment Fund together hold about 56.9% of Lucid‘s common stock, a stake that makes it a controlled company and has been built through years of equity injections and credit facilities.
The term loan sits alongside a parallel stream of preferred equity, most recently a $550 million Series C convertible preferred issue Lucid sold to Ayar in April, carrying a 9% compounded dividend, seniority to common stock and a conversion price of $10.8160.
That April package also included a $200 million equity investment from Uber, lifting the ride-hailing company’s total stake to $500 million, and an expanded robotaxi commitment for at least 35,000 vehicles.
A separate Saudi-linked facility, the GIB credit line, carried about $500 million in borrowings at the end of 2025.
Cash Burn Behind the Draw
The borrowing lands in the middle of Lucid‘s deepest cost-cutting yet.
The retrenchment comes as the US electric-vehicle market faces headwinds, with several major automakers pulling back their electric plans amid softening demand.
On June 22, the company cut about 18% of its US workforce, roughly 1,500 jobs, for some $158 million in annual savings, its second mass layoff of the year after a 12% reduction in February.
The cuts eliminated the second shift at its plant in Casa Grande, Arizona, and scrapped the chief operating officer role, with interim-chief-executive-turned-COO Marc Winterhoff leaving immediately.
Last week, Lucid overhauled almost its entire senior team, naming Alexander De Bock, previously of TI Automotive, as chief financial officer.
De Bock succeeds Taoufiq Boussaid, who will remain through the company’s second-quarter earnings to hand over before departing.
The restructuring is the first major move by Silvio Napoli, the former Schindler chief who became Lucid‘s permanent CEO on June 1, its third leader since founder Peter Rawlinson resigned in early 2025.
Lucid has suspended its 2026 production guidance of 25,000 to 27,000 vehicles pending Napoli’s review, citing elevated inventory, and plans to issue updated targets with its second-quarter results.
Losses and Liquidity
The reliance on Saudi capital tracks Lucid‘s heavy losses.
Lucid reported a net loss of about $2.7 billion, or $12.09 a share, on revenue of $1.35 billion in 2025, and said it burned $3.8 billion in free cash flow over the year.
The company ended 2025 with $997.8 million in cash and about $4.6 billion in total liquidity, which it said would fund operations into the first half of 2027.
First-quarter 2026 revenue was $282.5 million, up 20%, with a net loss of $1.13 billion, or $3.46 a share, and an adjusted loss before interest, taxes, depreciation and amortization of $780.6 million.
Deliveries reached 3,093 against 5,500 vehicles produced, held back by a seat-supplier issue that Lucid said disrupted Gravity SUV deliveries for 29 days, and revenue undershot analyst estimates near $440 million.
Lucid ended the first quarter with about $3.2 billion in liquidity, or roughly $4.7 billion on a pro forma basis after the April raise, before the July draw.
The company produced 4,774 vehicles in the second quarter, with full revenue, delivery and cash figures due on August 4.
