Friday, October 30, 2020
Home Lead Story Saudi Arabia's Sovereign Fund Invested $1 Billion In An American Electric Car...

Saudi Arabia’s Sovereign Fund Invested $1 Billion In An American Electric Car Manufacturer

Saudi Arabia's 33-year-old Crown Prince Mohammed bin Salman has talked about using the PIF to help diversify the economy of the kingdom.

Saudi Arabia’s sovereign wealth fund invested $1 billion Monday in an American electric car manufacturer just weeks after Tesla CEO Elon Musk earlier claimed the kingdom would help his own firm go private.

Tesla stock dropped Monday on reaction to the news, the same day that the Saudi fund announced it had taken its first loan, an $11 billion borrowing from global banks as it tries to expand its investments.

The Saudi Public Investment Fund said it would invest the $1 billion in Newark, California-based Lucid Motors.

Lucid Motors
Lucid Motors. Flickr

The investment “will provide the necessary funding to commercially launch Lucid’s first electric vehicle, the Lucid Air, in 2020,” the sovereign wealth fund said in a statement. “The company plans to use the funding to complete engineering development and testing of the Lucid Air, construct its factory in Arizona, enter production for the Lucid Air to begin the global rollout of the company’s retail strategy starting in North America.”

Lucid issued a statement quoting Peter Rawlinson, its chief technology officer, welcoming the investment.

“At Lucid, we will demonstrate the full potential of the electric-connected vehicle in order to push the industry forward,” he said.

The decision comes after Musk on Aug. 7 tweeted that he had “funding secured” to take Tesla private. Investors pushed Tesla’s shares up 11 percent in a day, boosting its valuation by $6 billion.

Lucid Motors
Electric Car

There are multiple reports that the U.S. Securities and Exchange Commission is investigating the disclosure, including asking board members what they knew about Musk’s plans. Experts say regulators likely are investigating if Musk was truthful in the tweet about having the financing set for the deal. Musk later said the Saudi Public Investment Fund would be investing in the firm, something Saudi officials never comment on.

Meanwhile Monday, the sovereign wealth fund known by the acronym PIF said it had taken its first loan, an $11 billion borrowing. It did not say how it would use the money, only describing it as going toward “general corporate purposes.”

Also Read: Electric Cars: The Newest Trend in India

The Las Vegas-based Sovereign Wealth Fund Institute estimates the Saudi fund has holdings of $250 billion. Those include a $3.5 billion stake in the ride-sharing app Uber.

Saudi Arabia’s 33-year-old Crown Prince Mohammed bin Salman has talked about using the PIF to help diversify the economy of the kingdom, which relies almost entirely on money made from its oil sales. (VOA)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,779FollowersFollow

Most Popular

New Mask Aiming to Make Wearer Less Infectious

People wear face masks to protect others -- not merely to protect themselves. With this in mind, researchers have developed a new concept for...

Cognitive Disorders Increase Risks of Developing Severe COVID

Researchers have claimed that dementia and other cognitive disorders now appear to be the risk factors for developing severe COVID-19. The findings, published in the...

Localized Content Driving New Customers in Amazon Prime Video

Riding on localized content being churned out in countries like India, the number of Prime members who stream Prime Video grew by more than...

Cheerful People Likely to Experience Less Memory Decline

People who feel enthusiastic and cheerful -- what psychologists call "positive affect" -- are less likely to experience memory decline as they age, say...

BCG Vaccine Can Help Managing COVID in Elderly: ICMR

The Bacille Calmette-Guerin or BCG vaccine, originally made against tuberculosis, may help in the management of COVID-19, especially in the elderly, says a study...

5 Simple Things to Improve Your Life and Your Bank Account

We’re always searching for ways to boost our wealth, improve our health, and increase our standing among our peers, but often, the best ways...

Uttar Pradesh To Get State Organ Tissue Transplant Organization

The Yogi Adityanath government in Uttar Pradesh has decided to set up the State Organ Tissue Transplant Organization (SOTTO), a state-level body that will...

Is Intelligence Necessary When It Comes to Making Money- Greatway Financial Weighs In

By Jamie Cartwright Intelligence might help you score well on a math test or enable success in academia, but it’s not necessarily a determining factor...

Recent Comments