March 25 Reuters Lucid is raising 1 billion in capital from an affiliate of Saudi Arabia39;s Public Investment Fund PIF, it said on Monday, sending the shares of the luxury electric carmaker up 18 before the bell.

The latest investment by the sovereign wealth fund underscores a key advantage Lucid has in the race for survival among struggling EV startups.

The Saudi government, which has a 60 stake, has invested billions in Lucid39;s success as part of a strategy to diversify the Kingdom39;s economy beyond oil.

Ayar Third Investment Company, a PIF affiliate, will buy 1 billion in convertible preferred stock and will be able to convert the preferred stock into about 280 million shares, according to a regulatory filing with the U.S. securities regulator.

The Californiabased company, which has been facing weakerthanexpected demand, said it intends to use the proceeds for corporate purposes and capital expenditure among other things.

Lucid is one of several EV startups hit hard by the slowdown in demand growth and a price war sparked by Tesla.

The company, headed by a former Tesla executive, expects to make 9,000 units in 2024, compared with the 8,428 vehicles it made last year.

Lucid39;s Air luxury sedans compete with Tesla39;s Model S and luxury EVs from MercedesBenz, BMW, Audi and Porsche, among other brands.

Lucid had last month said in its fourthquarter financial presentation that it had sufficient liquidity at least until 2025 and forecast 1.5 billion in capital…