California-based electric vehicle gave up Lucid Motors transferred majority ownership to Saudi Arabia’s Public Investment Fund in exchange for the $1.3 billion investment the PIF made in 2019, according to documents included in a lawsuit filed by the firm’s former head of finance.
The lawsuit was filed by Doug Coates, whose lawyers are arguing that he was entitled to a number of severance benefits because of a ‘change in control’ clause in his contract that was triggered as a result of the PIF deal.
While Lucid Motors has disputed the severance pay issue, a company statement cited by The Verge said that it “does not dispute that the financing transaction that closed on or about April 2, 2019 would appear to constitute a change of control.”
Although media outlets have previously reported that the PIF had taken a majority stake in Lucid, the email cited in the law suit appears to be the first time that the company has publicly acknowledged it.
Arabian Business has reached out to the PIF for comment.
In May, it was reported that Lucid Motors plans to begin production of a luxurious new battery-electric sedan by the end of the year.
To do so, the company is building a factory outside of the US city of Phoenix, and is slated to begin manufacturing its debut model this year for delivery in early 2021.
According to the company, construction has stayed on schedule at a time when other automakers have been forced to stop output and delay new models as a result of the ongoing Covid-19 pandemic.
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