Lucid Motors‘ shares hit a new all-time low on Thursday, just a day after interim CEO Marc Winterhoff said in Riyadh that he sees no reason to expect additional funding from the company’s main backer, Public Investment Fund (PIF).
Saudi Arabia’s sovereign wealth fund holds a stake of more than 50% in the EV maker.
Winterhoff noted that Lucid is seeking additional international financing, without naming any company.
Late last year, Winterhoff told Bloomberg that the company is “funded well into 2027” and would return to capital markets “when it’s opportune.”
Lucid disclosed in November that the PIF agreed to increase a delayed draw term loan credit facility from $750 million to approximately $2 billion, which has allowed the company to increase its total liquidity by nearly $1.3 billion.
Additionally, it announced plans to raise $875 million through a private offering of convertible senior notes due 2031, with underwriters receiving an option to purchase an additional $100 million in debt.
The company posted a net loss of $978.8 million in the third quarter, a slight reduction from $992.5 million a year earlier.
The company reported a loss of $1.8 billion for the first nine months of the year. As of the end of the third quarter, Lucid held $1.6 billion in cash and cash equivalents.
Fourth quarter and full-year results are scheduled to be reported on February 24.
Privatization Rumors
Since 2018, Saudi Arabia’s PIF has invested more than $8 billion in the EV maker to support its development.
However, as of Thursday, the company’s market capitalization stood at $3.39 billion.
Between January 2 and December 31, 2025, Lucid’s stock lost 65% of its value.
The company, which has been publicly traded since late 2021, hit a new all-time low of $10.46 on the final trading day of the year before closing 11 cents higher.
This Thursday, just two weeks into the new year, Lucid shares slipped further to $10.42.
As of press time, the shares were down more than 3%.
Lucid executed a 1-for-10 reverse stock split last August. By then, the CEO dismissed speculation that the decision was driven by delisting concerns.
A month later, Winterhoff said he wasn’t aware of any plans by the PIF to take the company private.
“One thing to keep in mind: We are an American company and a global company,” Winterhoff added, before warning that the privatization would transform Lucid into a Saudi carmaker.
“Outside of the [Gulf] region, [that] would not be the greatest selling point for being a global company,” he said.
The same issue surfaced late last year in a comment on an X post by Head of Communications Nick Twork.
Upon being questioned about any intent of privatization by the PIF, Twork wrote on X that “the impact of any theoretical dilution is much higher on them than any other shareholder.”
“They are long-term investors driven by a strategic vision for value creation. Any dilution plays against them, like any investor,” he said, noting that “they are measured on the returns they deliver on a portfolio.”
Slow Demand
Lucid‘s CEO said on Wednesday that he expects EV demand to weaken in both the US and Europe, even as the company prepares to expand further in the old continent.
Last year, the EV maker sold 15,841 vehicles globally, of which 12,614 were registered in its domestic market and 72 were listed across its four European markets (Germany, the Netherlands, Norway and Switzerland).
European sales accounted for just 2% of total deliveries. For most of the year, only the Air sedan was available for purchase.
Orders for the Gravity model opened in September, with deliveries of the second model expected to begin this month.
Upcoming Saudi Production
Commenting on the upcoming production at its Saudi facility, where it previously only assembled semi-knockdown kits (SKD), the interim CEO said on Wednesday that the company is “on schedule.”
Last year, Lucid‘s Chief Financial Officer Taoufiq Boussaid said that the company plans to begin production in late 2026, gradually ramp up output in 2027 and 2028 and reach a maximum capacity of 150,000 vehicles in 2029.
Winterhoff reiterated the timeline, adding that “we’ve already started moving equipment and we’re on schedule.”
Lucid will produce its mid-size platform in Saudi Arabia, which will allow it to bypass tariffs on imported parts from China.
The company is targeting exports of over 90% of its Saudi factory output, as noted last year by Lucid‘s President of Middle East Faisal Sultan.
By then, Sultan said that they estimated 13% of the output to go to other GCC markets, where the company is further expanding.
It remains unclear whether the California-based company plans to produce its third model exclusively in the Middle East plant.
