Key facts
- Prince Alwaleed bin Talal Al Saud acquired a 5% stake in Lucid Motors.
- The purchase involved over 19 million shares.
- The investment was made when Lucid's market cap was below $2 billion.
- Lucid Motors is currently undergoing a restructuring process.
- Saudi Arabia's Public Investment Fund (PIF) is the majority owner of Lucid.
Prince Alwaleed bin Talal Al Saud, a prominent member of the Saudi royal family, has acquired a 5% stake in electric vehicle manufacturer Lucid Motors. The purchase, which amounts to over 19 million shares, was made through his investment office at a time when Lucid's market capitalization was below $2 billion. This move increases the Kingdom's overall ownership in the company.
The acquisition follows recent reports that Lucid was considering bankruptcy protection or privatization by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF). Lucid has denied these reports, and its stock price has since recovered.
Lucid Motors is currently undergoing a significant restructuring effort led by its new CEO, Silvio Napoli. This includes recent workforce reductions aimed at simplifying the company's operations. The PIF has been a major financial backer of Lucid since 2018, increasing its ownership to approximately 60% after the company merged with a special purpose acquisition company in 2021, which brought it to public markets and raised $4 billion.
Prince Alwaleed bin Talal has a history of investing in U.S. technology companies, including a significant stake in Twitter prior to its privatization. He is also known for his investments in companies like Snap and Deezer.