Saudi billionaire Prince Alwaleed’s $129.5 million investment in Lucid boosted the EV maker’s shares, easing investor concerns after bankruptcy rumors and reaffirming Saudi backing for the company.
WEBDESK – SHARJAH NEWS
Saudi billionaire Prince Alwaleed bin Talal has invested $129.5 million in electric vehicle manufacturer Lucid Group, acquiring a 5% stake in a move that has boosted investor confidence and sent the company’s shares sharply higher.
According to a regulatory filing released Tuesday, Prince Alwaleed purchased 19.5 million Lucid shares during a recent decline in the company’s stock price. The investment triggered a strong market response, with Lucid shares surging 22% in New York trading to their highest level since April.
The investment comes at a critical time for the California-based EV maker, which has faced growing scrutiny over its financial health after recent speculation that it was preparing to file for bankruptcy. Lucid denied those reports earlier this month, although it confirmed that it had hired restructuring advisers from AlixPartners to strengthen its financial position.
The bankruptcy rumors had sparked one of the company’s steepest selloffs, with Lucid shares plunging as much as 57% in a single trading session. Although the stock has since recovered more than 50% from its July 14 record low, it remains down about 72% over the past year.
Market analysts described Prince Alwaleed’s investment as a significant endorsement of Lucid’s long-term prospects.
“The investment is a meaningful vote of confidence and supports the view that Saudi investors continue to see value in the company,” said Eric Varghese, a contributing analyst at Bloomberg Intelligence.
However, Varghese cautioned that the investment does not resolve Lucid’s underlying financial challenges. The company continues to burn cash as it expands production and develops new vehicle models, meaning additional funding may still be required.
Lucid Chief Executive Silvio Napoli has been pursuing aggressive cost-cutting measures, including workforce reductions, while preparing to launch the company’s next-generation midsize vehicle platform. The new model is widely regarded as essential to increasing sales volumes and moving the automaker closer to profitability.
Saudi Arabia remains Lucid’s largest shareholder through its Public Investment Fund (PIF), which owns 45.4% of the company after investing more than $9 billion over several years. The sovereign wealth fund has been instrumental in financing Lucid’s expansion, including the establishment of its manufacturing facility in Saudi Arabia.
Prince Alwaleed, one of the Middle East’s best-known investors, holds stakes in major international companies including Citigroup, Snap and Kingdom Holding. According to the Bloomberg Billionaires Index, his estimated net worth is $24.2 billion.
A Lucid spokesperson declined to comment on individual shareholder investments but welcomed what the company described as an independent vote of confidence from a prominent global investor.
The latest investment also supports Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the kingdom’s economy beyond oil by encouraging investments in advanced industries such as electric vehicles and clean technology.
While analysts believe Prince Alwaleed’s investment could help restore investor sentiment in the near term, they say Lucid’s long-term success will ultimately depend on its ability to launch competitive new vehicles, scale production efficiently, and achieve sustainable profitability.
