Lucid’s dream can continue on a bed of Saudi money

By the Editorial Team · Thursday, July 23, 2026

Lucid Motors is experiencing significant financial losses, with cash burn far exceeding initial profit forecasts and a stock price decline of about 97% since going public in 2021. Despite these challenges, the company's partnerships with Uber and Saudi Arabia’s Public Investment Fund provide critical funding and strategic support aimed at sustaining operations and fostering long-term growth.

Electric vehicle manufacturer Lucid Motors, which initially positioned itself as a “post-luxury” pioneer when it announced plans to go public via a special purpose acquisition company (SPAC) in 2021, continues to face significant financial challenges despite backing from major investors.

Five years after its ambitious projections, Lucid’s performance has fallen well short of expectations. The company had forecasted a gross profit of $5.3 billion and free cash flow of $1.5 billion for 2024. Instead, industry analysts estimate Lucid will burn approximately $3.6 billion in cash this year due to production costs exceeding sales revenue. Since its public listing, the company’s stock price has plummeted by around 97%, reflecting market skepticism about its commercial viability.

Lucid’s initial vehicle, the Air, has received positive reviews for its quality and innovation. However, the company has struggled to achieve significant sales volume in a highly competitive sector. In the United States, it faces stiff competition from established players like Tesla and Rivian, while internationally, Chinese manufacturers continue to intensify pressure.

The company projects it will reach positive free cash flow toward the end of the decade but faces considerable cash flow deficits in the near term. Estimates from S&P Capital IQ suggest Lucid could burn close to $9 billion between 2026 and 2029. These figures account for a recently announced partnership with Uber, which has committed to purchasing at least 35,000 Lucid vehicles for use in its emerging robotaxi fleet scheduled to launch this year.

Lucid reported having approximately $4.7 billion in liquidity at the end of its last fiscal quarter, supported by capital contributions from key investors including Uber and Saudi Arabia’s Public Investment Fund (PIF), its largest backer. Despite this financial cushion, the company is expected to require at least $1.5 billion more from capital markets in 2025 to maintain operations, with additional funding likely needed thereafter.

While such ongoing capital raises could deter many investors, Lucid’s prominent shareholders appear committed to supporting its long-term prospects. Uber’s strategic partnership aims to foster competition in the electric and autonomous vehicle market, while Saudi Arabia’s PIF holds a vested interest beyond financial returns. Lucid is actively establishing manufacturing operations within Saudi Arabia, aligning its growth with the country’s industrial diversification goals.

With continued support from its major stakeholders, Lucid may navigate its current funding challenges and eventually develop a competitive product offering. Although the company’s investment appeal remains uncertain, the involvement of a state-backed investor suggests it could endure this critical phase despite the difficult market environment.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.