Lucid Motors has secured an additional $1.5 billion investment from Saudi Arabia, as announced alongside the company’s Q2 2024 financial results. This injection of funds aims to boost the production of Lucid’s new electric vehicle (EV), the Gravity. It will also expand the company’s factory in Saudi Arabia, which is expected to have an annual capacity of 150,000 vehicles.
The investment comes from the American automaker’s major shareholder, Ayar Third Investment Co., an affiliate of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF).
Following the announcement, Lucid’s shares rose about 6% in extended trading, despite a 3.9% drop during regular trading hours. Tesla’s rival also reported its second-quarter financial results for the period ending June 30, with revenue of $200.6 million and the delivery of 2,394 vehicles. The company ended the second quarter with about $4.28 billion in total liquidity.
Lucid Takes A Financial Boost
PIF’s investment includes $750 million in convertible preferred stock through a private placement and a $750 million unsecured delayed draw term loan facility, subject to certain conditions. This financing aligns with PIF’s strategic goal to become a global investment powerhouse and drive Saudi Arabia’s economic transformation by creating new sectors and opportunities that can shape the future global economy.
Half of this investment will be provided as a loan. In contrast, the other half will be exchanged for convertible preferred stock by Ayar Third Investment. This marks the second investment from Saudi Arabia this year, bringing the total investment in Lucid to about $8 billion, with the country’s stake in Lucid now at about 60.
Lucid CEO Peter Rawlinson stated that these new funds will ensure liquidity at least until the fourth quarter of 2025.
The Saudi plant, which began operations last fall, currently assembles semi knocked-down units of the Air sedan at a rate of 5,000 units annually. The long-term goal is to achieve full production of Lucid vehicles at an annual rate of 150,000 units.
Meanwhile, Lucid’s primary facility in Casa Grande, Arizona, also responsible for Air sedan production, aims to reach an annual capacity of 365,000 units once fully expanded. The Arizona plant will also begin producing the Gravity SUV later this year.
Fueling Lucid’s Ambitious EV Expansion Plans
Despite these ambitious plans, Lucid still faces significant challenges in scaling up production. The company manufactured only 2,110 vehicles in the second quarter and is on track to produce about 9,000 vehicles this year, compared to 8,428 vehicles produced last year.
Compared to the EV giant, Tesla, the full EV maker reported delivering 443,956 vehicles in Q2 2024 and produced 410,831 vehicles. Globally, EV sales reached an all-time high in the second quarter of 2024, with a 19% increase from the first quarter, according to New AutoMotive’s Global Electric Vehicle Tracker.
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Moreover, nearly 2.6 million EVs have been sold globally since May 2024, with China’s domestic market driving much of this growth.
Since 2021, first-quarter EV sales have typically accounted for 15-20% of total global annual sales, per the International Energy Agency data. Based on this trend, combined with policy momentum and typical seasonality in EV sales, estimates suggest that electric car sales could reach around 17 million in 2024.
Electric Car Sales, 2012-2024

This projection indicates robust growth for a maturing market, with 2024 sales expected to surpass those of 2023 by more than 20%, resulting in EVs comprising more than one-fifth of total car sales.
In the United States, EV sales could rise by 20% in 2024 compared to the previous year, according to the IEA. This increase translates to almost half a million more sales relative to 2023. Despite a rocky end to 2023 for EVs in the U.S., sales shares are expected to remain strong in 2024, with projections indicating that around one in nine cars sold will be electric throughout the year.
More EV models become available but the trend is towards the bigger ones. The number of available EV models is nearing 600, with ⅔ of these being large vehicles and SUVs, IEA reported.
Scaling New Heights: Lucid’s Strategic Growth in the EV Market
The Gravity was officially unveiled in November, with Lucid stating it “heralds the dawn of a new era for electric SUVs” by offering over 440 miles of range. This full-size electric SUV features a luxurious interior with three rows, providing ample room for seven adults and their belongings.
The luxury electric SUV is powered by Lucid’s next-generation technology, which is an evolution of the award-winning tech found in the Air sedan.
Lucid’s CEO, Peter Rawlinson, emphasized that the Gravity SUV represents a significant advancement in the company’s technology and design. Despite its long-range capabilities, the Gravity’s battery pack is “a little more than half the size of some of our battery-hungry competitors.” This is crucial as the market for lithium, a key element that powers EV batteries, is in limbo.
Lithium prices keep dropping with no quick recovery in sight per the experts advice. BloombergNEF predicts that low lithium battery prices will persist for several years, significantly impacting the automotive industry. This extended period of affordability is expected to drive further adoption of electric vehicles.

As lithium battery costs remain low and with the significant investment announced, the economic feasibility of Lucid’s electric SUV holds strong. It strengthens Lucid’s financial position and supports its mission to accelerate the global shift towards sustainable transportation and energy.
The post Lucid Gets $1.5 Billion from Saudi: Could This Be A New Era for Electric SUV? appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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