Lucid Motors Appoints New CEO and Secures Investments from Uber and Saudi Fund

Lucid Motors, an electric vehicle manufacturer, has appointed a new chief executive officer. The search for the replacement lasted more than a year following the resignation of Peter Rawlinson, the previous CEO. The appointment was detailed in a regulatory filing.

The new CEO will initially serve as an executive director on the company's board under a Swiss employment agreement. The individual requires approval to work in the United States before assuming the full CEO role. Lucid Motors expects this permission to be granted in the coming weeks, after which the current interim leader will return to the position of chief operating officer.

The new CEO's compensation package includes a base salary of $1.5 million annually. It also features a $1 million relocation payment to the United States, a bonus package, a grant of shares valued at nearly $10 million, and a performance-based stock package potentially worth tens of millions of dollars. These terms are outlined in the regulatory filing submitted to authorities.

In a related development, Uber has committed to purchasing at least 10,000 Lucid Gravity SUVs. This agreement follows an initial partnership announced last July, which included a $300 million investment from Uber and a commitment to buy at least 20,000 of the vehicles. The updated terms reduce the minimum order quantity while supporting Uber's plans for autonomous vehicle services.

Nuro Uber, in collaboration with autonomous vehicle partner Nuro, began testing modified Lucid Gravity SUVs for a luxury robotaxi service in San Francisco this year.

The testing started one day before the announcement of the new commitment. Earlier this year, at an investor day event, Lucid Motors reported being near an agreement with Uber for similar arrangements involving more affordable mid-size vehicles. The investment from the Saudi Arabian Public Investment Fund represents the latest funding from the entity into Lucid Motors.

This support began in 2018 with an investment that helped sustain the company during its early stages. The fund has provided multiple cash injections since then to support operations and growth in the electric vehicle market.

focuses on producing electric vehicles, including luxury SUVs like the Gravity model.

The company has faced challenges in scaling production and securing long-term partnerships amid competition in the EV industry. These recent announcements aim to bolster financial stability and expand market reach through collaborations with ride-hailing and investment partners. The stakes involve Lucid Motors' ability to meet production targets and deliver vehicles to partners like Uber.

Employees, investors, and customers in the transportation sector are affected by these changes in leadership and funding. U.S. role and implementation of the vehicle purchase agreements, with potential testing and launches of robotaxi services in the coming months.