March 25 (Reuters) - Electric automaker Lucid said on Monday it had signed a deal to raise $1 billion in funding from an affiliate of Saudi Arabia's Public Investment Fund.

Ayar Third Investment Company, an affiliate of the sovereign wealth fund, will buy $1 billion in convertible preferred stock, the EV maker said.

Shares of the California-based company, which intends to use the proceeds for corporate purposes among other things, rose about 4% in premarket trading.

(Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)