Saudi capital makes another bet on new energy, Lucid receives US$130 million investment from richest man
Saudi Prince Alwaleed bin Talal Al Saud acquired approximately US$129.5 million in shares in the US electric car manufacturer Lucid Group. The investment is seen as an important boost of confidence in the electric vehicle company, which comes just weeks after Lucid emerged from rumors that it was about to file for bankruptcy. After the announcement of Walid's investment news, Lucid's stock price quickly rose to a new intraday high, now up nearly 20%.
Saudi Prince Alwaleed bin Talal Al Saud has acquired an approximately US$129.5 million stake in the US electric car manufacturer Lucid Group. The investment is seen as an important boost of confidence in the electric vehicle company, which comes just weeks after Lucid emerged from rumors that it was about to file for bankruptcy. After the announcement of Walid's investment news, Lucid's stock price quickly rose to a new intraday high, now up nearly 20%. Data shows that Walid’s current net worth is around US$23 billion to US$24 billion, making him the richest man in Saudi Arabia. Walid is internationally famous for his investments in Citigroup, Apple, Twitter, etc. He is known as the Arab "Warren Buffett" and has the title of "Middle East Stock God". According to the 13G regulatory documents disclosed on Lucid’s official website, Walid purchased 19.513 million Lucid shares, equivalent to approximately 5% of the company’s equity. A spokesman for Waleed said the deal came amid a recent sharp decline in Lucid's stock price. A Lucid spokesperson said that the company does not comment on individual investment behavior, "but we are aware of and grateful for this confidence and support from outside." At present, Lucid's new CEO Silvio Napoli is pushing the company to cut costs and lay off employees through organizational adjustments. The company is working to launch its upcoming midsize vehicle platform, which is widely seen as key to profitability. Earlier this month, the automaker, which continues to lose money, denied rumors that it was about to file for bankruptcy, but admitted that it had hired AlixPartners as a restructuring consultant, triggering market panic and causing the stock price to plummet 57% during the session on July 14. Lucid's share price has fallen by approximately 75% in the past 12 months, making it one of the worst-performing investment projects of its largest shareholder, the Saudi Public Investment Fund (PIF). PIF currently holds about 45.4% of Lucid's shares and has invested more than $9 billion in the company. Waleed also previously invested in SpaceX with PIF, but SpaceX shares have also fallen since its record-breaking listing in June.