Lucid Group Inc (LCID), backed by Saudi Arabia’s Public Investment Fund, said this week it was preparing an entry in China’s auto market.
According to a report by Reuters, citing an unidentified source with knowledge of the matter, the luxury electric vehicle maker intends to sell imported cars in China and is also considering producing vehicles locally.
Last week, Lucid Group announced plans to raise nearly $3 billion via a stock offering, two-thirds of which will come from Saudi Arabia’s PIF.
According to Lucid’s head of China operations Zhu Jiang, the funding will help the company “bring the advanced EV technology and product experience to the industry and users globally at a faster pace.”
Similar to other EV makers, Lucid Group is struggling with widening losses and shrinking cash reserves amid concerns over a recession and a price war triggered by industry leader Tesla Inc.
The shares of Lucid Group Inc closed 1.87% ($0.12) lower at $6.28 on Nasdaq on Thursday, as they extended a loss from the previous trading session.
The luxury EV maker’s total market cap now stands at $13.594 billion.
The shares of Lucid Group Inc have retreated 8.05% so far this year, following another 82.05% loss in 2022.
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