Saudi Prince Buys $154M Stake in Lucid EV

Lucid Group's stock experienced a significant increase on Tuesday following the announcement of a substantial investment by Prince Alwaleed bin Talal bin Abdulaziz al Saud. The Saudi royal family member revealed his ownership of 19.5 million Lucid shares as of July 28. This significant stake is currently valued at over $154 million, given the stock's trading price near $7.90 per share. Prince Alwaleed, whose net worth is estimated at $23 billion, is recognized for his successful multi-decade investment history.

This investment arrives at a critical juncture for Lucid. The electric vehicle manufacturer has seen its stock price plummet by nearly three-quarters over the last year. The company is contending with the expiration of federal tax credits for EV purchases, which concluded on September 30. Furthermore, Lucid remains deeply unprofitable as it works to scale up its production capabilities, having reported an operating loss of $989 million in the first quarter. Despite these challenges, investors interpreted Prince Alwaleed's substantial share acquisition as a strong vote of confidence in the electric vehicle startup, prompting many to invest alongside the billionaire.