Tesla has cemented its position as a leader in the all-electric car segment. It’s also pushing the boundaries of in-car technology with features like Autopilot. There are companies that are looking to challenge Elon Musk’s outfit and Lucid Motors is one of them. The company showcased a prototype version of its electric car at CES last year. It hasn’t been able to raise the funding required to begin production, though, and its money woes may soon be addressed by $1 billion in funding.
Reuters reports that Saudi Arabia’s sovereign wealth is in talks with Lucid Motors for an over $1 billion investment in the company. The discussions are said to be at an advanced stage, so much so that a term sheet has reportedly been drawn up as well.
The fund would reportedly release the money in stages. After the first $500 million tranche, it will provide two additional tranches of an undisclosed amount provided that Lucid meets production milestones.
It’s interesting to note that Saudi Arabia’s sovereign wealth fund is also in talks with Tesla over Elon Musk’s proposal to take the company private. It has already purchased 5 percent of the company by picking up shares from the public markets.
Lucid Motors hasn’t commented on the report, a spokesperson for the company said that they “do not comment on Lucid’s fundraising activities.”