Tesla Drops 8%, Rival Lucid Receives 8 Trillion Won Injection

Lucid, a US electric vehicle company and rival to Tesla, has raised nearly 2 trillion won in funding from several investors, including the Saudi Arabian sovereign wealth fund.

According to CNBC and other sources on the 20th (local time), Lucid completed a paid-in capital increase worth $1.515 billion (about 1.95 trillion won).

Elon Musk

Ayar Sard Company, an investment affiliate under the Public Investment Fund (PIF), the Saudi sovereign wealth fund, invested $915 million (1.18 trillion won) by acquiring 86 million shares of Lucid stock.

This investment by the Saudi fund was made to maintain its existing 62% stake in Lucid. The remaining $600 million was raised through a third-party allotment paid-in capital increase.

Lucid stated in a press release that "the funds will be used to strengthen the company's balance sheet and liquidity position."

Headquartered in Newark near San Francisco, USA, Lucid is a manufacturer of luxury sedan electric vehicles.

According to Lucid's Q3 earnings report, as of September 30, the company's cash liquidity was $3.85 billion (approximately 5 trillion won).

Meanwhile, Tesla's stock price plunged more than 8% on the same day.

Analysts suggest this was due to Wall Street securities firms lowering Tesla's target price and the US Treasury delaying the detailed implementation of the electric vehicle (EV) battery tax credit (subsidy) related to the Inflation Reduction Act (IRA) from the original January 1 next year to March, which acted as a negative factor.

Daiwa Capital lowered its target price from $240 to $177, stating that CEO Elon Musk is distracted by Twitter and not focusing on the core business. Evercore reduced its target from $300 to $200, and Mizuho also lowered its target from $330 to $285.

This content was produced with the assistance of AI translation services.