Saudi Prince Invests in Lucid Motors, Boosting Kingdom’s EV Stake
Prince Al Waleed bin Talal Al Saud, a member of the Saudi royal family, has made a significant investment in Lucid Motors, a leading electric vehicle (EV) manufacturer. The prince has purchased a 5% stake in the company, increasing the Kingdom’s overall ownership of Lucid Motors.
In a filing with the U.S. Securities and Exchange Commission, it was revealed that the billionaire prince’s investment office purchased approximately 19 million shares of Lucid Motors. This purchase was made when the company’s market capitalization was below $2 billion, on July 14.
Lucid Motors’ stock price had rebounded since an electric vehicle blog published a report claiming that the company was considering either filing for bankruptcy protection or being taken private by Saudi Arabia’s sovereign wealth fund. The company strenuously denied the reports, and its stock price has since recovered.
‘We don’t comment on individual investments, but we are aware and appreciate the independent vote of confidence,’ Lucid Motors’ chief communications officer Nick Twork said in a statement.
Lucid Motors’ Restructuring Efforts
The share purchase comes in the middle of a major restructuring effort kicked off by Lucid’s newly appointed CEO, Silvio Napoli. The CEO has cut 18% of the workforce in June in an effort to ‘simplify the company.’ This move followed a similarly large layoff earlier this year before Napoli took over.
Lucid Motors has been majority-owned by the Public Investment Fund (PIF) since its initial investment in 2018. The PIF has owned roughly 60% of Lucid Motors since the EV maker merged with a special purpose acquisition company in 2021, a transaction that brought it to public markets and raised $4 billion.
The Saudis have remained a major source of financial support for Lucid Motors since it went public. They have bought up shares and lent billions of dollars as the company has struggled to reach a mass market of EV buyers in the U.S. and abroad.
Prince Al Waleed bin Talal’s Investment History
Prince Al Waleed bin Talal has a history of investing in U.S. tech. Through his holding company, he was a major shareholder of Twitter when it was still public. In 2022, he initially balked at Elon Musk’s attempt to buy the social media company. However, he quickly reversed course and cozied up to Musk, becoming the second-largest shareholder of Twitter after Musk took it private.
He also owns stakes in Snap and Deezer and is often referred to as the ‘Arabian Warren Buffett,’ according to his website.
