According to the term sheet, the first tranche of $500 million would initially be handed over to the Newark, California –based company and the rest would come up after the electric car maker meets some production deadlines. It may be noted that Lucid Motors has not started selling its vehicles though it has begun taking $2,500 as refundable deposits from interested parties.
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The company had released $100,000 luxury sedan prototype two years ago called Lucid Air, the production of which it expects to begin by the end of this year.
PIF, which has about $250 billion in assets, has made numerous investments in technology companies, including a $45 billion funding in a tech fund backed by SoftBank Group, according to Reuters.
Musk, who is facing the wrath of short-sellers and analysts for Tesla’s rampant cash burn, had stunned market pundits last week when he announced through a tweet his intention to take the company private. He later explained that he had held talks with PIF and was expecting the Saudi firm to provide the necessary funding.
However, with the latest development, the prospects of a massive investment in Tesla have just narrowed.