Archive — US — techcrunch
Saudi prince buys 5% stake in Lucid Motors
Saudi Prince Al Waleed bin Talal Al Saud has acquired a 5% stake in Lucid Motors by purchasing over 19 million shares for under $2 billion, amid market concerns of bankruptcy. This investment signals continued Saudi support, as they hold approximately 60% of Lucid via the Public Investment Fund. The electric vehicle company is undergoing restructuring led by new CEO Silvio Napoli, following significant layoffs.
Key points
- Prince Al Waleed bin Talal purchased a 5% stake in Lucid Motors by buying more than 19 million shares.
- The shares were bought when Lucid's market cap was below $2 billion, around July 14, during bankruptcy speculation.
- Lucid Motors denied bankruptcy claims and has seen stock price recovery since.
- The investment strengthens Saudi Arabia's overall ownership, which is approximately 60% through the Public Investment Fund.
- Lucid is restructuring under new CEO Silvio Napoli, who has implemented significant workforce reductions to simplify operations.
Why it matters
- This investment reflects the growing trend in the IT and automotive sectors, particularly in the electric vehicle market, where significant investments are crucial for advancement.
- In 2025, the demand for electric vehicles is expected to surge, with major automakers focusing on EV technology and sustainability.
- Saudi Arabia remains influential in tech investments, having previously attempted to take Tesla private and investing heavily in other tech sectors.
The acquisition of Lucid Motors shares by Prince Al Waleed underscores Saudi Arabia's ongoing commitment to the electric vehicle market, while also highlighting Lucid's efforts to stabilize amidst recent challenges.