Shares of U.S. electric vehicle maker Lucid rose more than 20% to $7.82, according to market data from BIT (bit.com), after news that Saudi Prince Alwaleed bin Talal Al Saud had taken a 5% stake in the company. The prince spent $129.5 million to buy roughly 19.5 million Lucid shares, the report said. A spokesperson for him said the investment came after Lucid’s stock had fallen sharply in recent weeks.
The move followed a stretch of heavy pressure on Lucid. The company had faced market concern over possible bankruptcy because of funding strain and ongoing losses. Lucid later denied the bankruptcy rumors, but confirmed it had hired restructuring adviser AlixPartners. That disclosure had previously sent the stock down as much as 57% in a single day.
BlockBeats said the new investment was seen by the market as a sign of confidence in Lucid’s future and as support for sentiment around the company’s financial condition. Even so, Lucid still faces challenges tied to sales growth, profitability and cash flow.
U.S. electric vehicle maker Lucid rose more than 20% and was trading at $7.82, according to market data from BIT (bit.com) cited by BlockBeats on July 29.
The move came after Saudi Prince Alwaleed bin Talal Al Saud bought about 19.5 million Lucid shares for $129.5 million, taking his stake to 5%.
A spokesperson for the prince said the investment was made after Lucid’s stock had dropped sharply in recent weeks.
Lucid had earlier faced market concern over a possible bankruptcy because of funding pressure and continued losses. The company later denied the bankruptcy rumors, but acknowledged that it had hired restructuring adviser AlixPartners. After that disclosure, the stock once plunged 57% in a single day.
BlockBeats said the prince’s investment was viewed by the market as a vote of confidence in Lucid’s future and as support for easing investor concern over the company’s financial condition. Still, Lucid continues to face pressure related to sales growth, profitability and cash flow.
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