Lucid has secured another vote of confidence from Saudi Arabia, just weeks after the struggling automaker pushed back against a report claiming it was considering bankruptcy.
A new filing with the U.S. Securities and Exchange Commission (SEC) shows that Prince Alwaleed bin Talal bin Abdulaziz Al Saud has acquired a 5% stake in Lucid through the purchase of 19.5 million Class A shares. According to the filing, the investment was made on July 23, with the prince now holding sole voting and dispositive power over the shares.
Based on that date, the purchase was made a little over one week after Lucid’s stock tumbled following reports that the company was exploring either a bankruptcy filing or a take-private transaction with Saudi Arabia’s Public Investment Fund (PIF). Lucid quickly denied those claims, calling them false and even issuing a cease-and-desist letter to the outlet that published the report.
Since that report, shares of Lucid (LCID) have increased by more than 70%, including a 20% rise today following the filing. Based on the closing share price today, Prince Alwaleed’s newly disclosed 5% stake is worth roughly $127 million.
Despite the denial, Lucid is in the middle of a significant restructuring effort. Earlier this year, the company laid off 12% of its workforce before announcing another 18% reduction under new CEO Silvio Napoli in June. Lucid has also brought in turnaround specialist AlixPartners to help improve operations and strengthen execution as it works to reduce mounting losses.
Saudi Arabia has long been Lucid’s financial lifeline. The country’s Public Investment Fund first invested in the company in 2018 and remains its majority shareholder, owning more than 60% of the automaker. Since Lucid went public in 2021, the sovereign wealth fund has repeatedly injected billions of fresh capital to support the EV startup.
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