Saudi Arabia’s Public Investment Fund (PIF) officially announced a funding to the tune of $1 billion for Tesla’s prime rival, Lucid Motors.

Reports of the Saudi funds investing in Lucid motors had made a brief appearance during the hustle and bustle of Tesla CEO Elon Musk’s unprecedented decision to take the company private. However, Tesla might have miscalculated the cost of playing a reversal after making such a crucial decision public.

Reports of the Saudi funds investing in Lucid motors had made a brief appearance during the hustle and bustle of Tesla CEO Elon Musk's unprecedented decision to take the company private

According to the PIF, the funding will help the emerging Silicon Valley-based company to achieve the commercial launch of its Lucid Air electric vehicle by 2020. Lucid now joins the cutthroat competition for an electrified lineup along with other auto giants such as Daimler-owned Mercedes, BMW and Volkswagen’s Audi and Porsche brands.

Tesla investors suffered a massive shockwave after Musk on August 7 took to Twitter to announce his plans of taking the company private. In a series of updates that the company provided in the consecutive days clarified the intent to go private.

Neither the PIF nor Lucid Motors gave an exact figure of the investment that was made. The sole intent behind Saudi’s investment in an emerging EV manufacturer is to expand its investment portfolio that is currently heavily reliant on crude oil.

Neither the PIF nor Lucid Motors gave an exact figure of the investment that was made

“They’re not just a financial partner they’re a strategic partner,” Lucid Chief Technology Officer Peter Rawlinson told a leading news agency.

In one of the update posts, Tesla CEO Elon Musk talked about the Saudi Arabia’s Public Investment Fund that had shown interest in taking the company private since the last couple of years and their support to fund the billion dollar transition of taking the company private.

However, in late August, the company pulled itself from the controversial plans and decided to remain public, complying with the interests of its investors.

The article was adapted from an article at Nikkei Asian Review, which you can find here.