Saudi Wealth Fund in Talks with Lucid for Car Factory, FT Says

The front wheel of a Lucid Air prototype electric vehicle, manufactured by Lucid Motors Inc., is displayed at the company’s headquarters in Newark, California, U.S., on Monday, Aug. 3, 2020. The final specs and design of the Lucid Air are due to be unveiled at an event in September and executives say customers can now expect delivery of the first batch of Airs in spring 2021. Photographer: David Paul Morris/BloombergLucid Motors Inc. is in talks with Saudi Arabia’s sovereign wealth fund to build an electric vehicle factory in the kingdom, the Financial Times reported, citing an interview with the fund’s governor, Yasir Al-Rumayyan.

Bloomberg reported earlier this month that Lucid is in talks with the kingdom’s Public Investment Fund to build a factory potentially near the Red Sea city of Jeddah. The company raised more than $1 billion from the PIF in 2018, an investment that was conditional on the firm developing a site in Saudi Arabia, people familiar with the matter said.

The fund is seeking to lure international companies to set up operations in the kingdom, the FT said. It is “already in discussion with a number of companies in the health sector,” Al-Rumayyan told the paper, without giving further details.

The PIF is also in talks with “many” companies in SoftBank’s Saudi-backed Vision Fund. “The next step is to go forward in getting them to the kingdom,” Al-Rumayyan said.

• The PIF’s international exposure will decline to about 20% of assets under management during the next five years, from nearly 30%.
• Saudi Arabia might consider listing more shares in Saudi Aramco “if the valuation is right,” he said.
• The PIF will need additional government cash injections. This will happen only when the central bank’s reserves are replenished.
• NOTE: Saudi Arabia Removes Central Banker, Lays Out Wealth Fund Goals