As the move for electric cars gains momentum in the US, at least two America-based electric car manufacturers are in sight for cash-rich Saudi Arabia’s sovereign wealth fund. The first one, Tesla was in the news recently after announcing privatisation efforts by its CEO Elon Musk. As of now Saudi Arabia’s wealth fund already owns a five per cent stake in Tesla which could increase if the Board approves the deal.
A second deal could be worth US$1 billion with Lucid Motors – a US-based, Chinese investor backed electric car maker. If the deal goes through, Lucid would immediately get $500 million the Saudi wealth fund that would help the 11-year old company start production of its first car, the Air. The balance could be released in two tranches as Lucid reaches performance-related goals. The Air concept when produced will be a direct competitor to the Tesla Model S.
The billion-dollar investment would give Saudi Arabia near-complete ownership of Lucid.
What remains to be seen is which company will be first to get the Saudi funds.