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Saudi Prince Buys Lucid Stock
29 Jul
Summary
- Saudi royal family member disclosed owning Lucid shares worth over $154 million.
- Lucid's stock has dropped nearly 75% in the past year.
- The EV maker faces challenges from lost tax credits and unprofitability.
Lucid Group's stock experienced a significant jump on Tuesday, spurred by the announcement of a substantial investment from a prominent figure.
Prince Alwaleed bin Talal, a member of the Saudi royal family, revealed on July 28 that he owned 19.5 million shares of Lucid. This stake is currently valued at over $154 million, given Lucid's stock trading price around $7.90 per share.
This news arrives as Lucid's stock has seen a sharp decline, shedding approximately 75% of its value over the preceding year. The electric vehicle manufacturer is also contending with the loss of federal tax credits for electric vehicle purchases, which concluded on September 30. Furthermore, Lucid continues to operate at a deep loss as it scales its production, reporting an operating loss of $989 million in the first quarter.
Despite these challenges, investors are interpreting Prince Alwaleed's acquisition as a strong endorsement of the electric vehicle startup, prompting many to invest alongside the billionaire.
