Lucid Group, an electric vehicle maker, has announced plans to raise $3 billion with the majority investment coming from Saudi Arabia’s Public Investment Fund (PIF). According to CNBC, Lucid will also be offering their common stock to the public as part of the fundraising effort. The aggregate expected gross proceeds are approximately $3.0 billion.

The announcement comes just after Lucid shares experienced a surge in after-hours trading, as reported by Benzinga. However, it remains to be seen how the influx of funds will impact the company’s stock value in the long term.

The investment from PIF marks a significant milestone for Lucid, as they begin production and prepare to release their first vehicle later this year. The Lucid Air, a luxury sedan, is already generating a buzz in the EV industry and has been praised for its long-range capabilities. The additional funds will allow the company to expand production and potentially introduce new models in the future.

PIF’s investment in Lucid is part of their broader strategy to diversify their portfolio and invest in innovative companies in various sectors. It is not the first time PIF has invested in the EV industry, as they previously invested in Tesla and also led a $1 billion funding round for electric truck maker, Rivian.

The announcement of the fundraising effort was also covered by PR Newswire and InsideEVs.