Saudi Arabia’s Public Investment Fund has consolidated its majority stake in Lucid Motors following the formal closing of a $550 million Series C convertible preferred stock placement, pushing the sovereign wealth fund’s beneficial ownership to 56.85% of the premium electric vehicle manufacturer. The transaction, executed through Ayar Third Investment Company—a wholly-owned PIF subsidiary—acquired 55,000 shares at $10,000 per share, convertible into approximately 50.85 million shares of Class A common stock at an initial conversion price of $10.8160 per share. The filing formalized terms previously disclosed in announcement form on April 14, 2026, with the transaction closing on April 28, 2026.
The financing structure carries significant sovereign capital implications for the broader MENA region’s ambitions to position itself as a global hub for electric vehicle manufacturing and advanced mobility infrastructure. PIF’s cumulative commitment to Lucid now stands at approximately $9.55 billion across seven distinct funding phases since 2018, representing one of the most substantial sovereign wealth fund investments in the global EV sector. The 9% compounding payment-in-kind dividend—payable quarterly with the first compounding date on June 30, 2026—demonstrates PIF’s demand for protective economics alongside its strategic industrial objectives, with the dividend rate escalable to 15% upon certain covenant breaches, ranking senior to common stock in liquidation scenarios.
Corporate governance dynamics further entrench PIF’s influence, with the fund now classified as a “director by deputization” through Turqi A. Alnowaiser, who serves as co-manager of Ayar and has chaired Lucid’s board since April 2019. The Series C holders’ voting power remains capped at 19.99% pending shareholder approval, which the parties have agreed to seek within 18 months—providing a structured pathway for PIF to exercise full voting rights. Separately, PIF expanded Lucid’s delayed draw term loan facility by $500 million to approximately $2.5 billion in total commitments while eliminating both the minimum liquidity covenant and the requirement to first exhaust ABL borrowing availability, granting the EV manufacturer substantially enhanced financial flexibility as it scales production capacity to meet regional and global demand.
