The Saudi PIF already owns about 60% of Lucid.
Lucid Motors tumbled more than 13% after revealing plans to raise billions from its biggest investor.
Saudi’s Public Investment Fund already owns about 60% of Lucid after first investing in 2018.
Lucid will also sell 173 million shares in a public offering.
Lucid Motors skidded lower on Thursday after the Tesla rival said it would raise $3 billion, mostly from Saudi Arabia’s sovereign wealth fund.
Shares fell more than 13% to $6.72 in pre-market trading after closing at $7.76 on Wednesday.
In a press announcement, Lucid said its majority owner, Public Investment Fund (PIF), would buy another 265 million shares for about $1.8 billion.
The rest of funding will come from selling another 173 million shares, the company said. The proceeds will be used for capital expenditures and working capital.
PIF, which owns more than 6o% of Lucid, first invested in the California-based EV maker in 2018. It also bet on Tesla around that time, but since sold its stake in Elon Musk’s company.
The Saudi bet on Lucid follows a challenging few months for the company as it grapples with macroeconomic headwinds and a Tesla-triggered price war.
In late March Lucid announced plans to lay off hundreds of workers amid production problems.