Prince Al Waleed bin Talal Al Saud, a prominent member of the Saudi royal family, has recently acquired a 5% stake in Lucid Motors, further increasing the Kingdom’s investment in the electric vehicle (EV) manufacturer. This acquisition involved the purchase of over 19 million shares, as detailed in a recent filing with the U.S. Securities and Exchange Commission.
Prince Al Waleed’s investment firm made this purchase when Lucid’s market capitalization was below $2 billion. This period coincided with reports suggesting potential financial difficulties for Lucid, including speculation about bankruptcy or a possible privatization by Saudi Arabia’s sovereign wealth fund. Lucid Motors has firmly denied these claims, and the company’s stock price has since shown signs of recovery.
Lucid Motors’ Chief Communications Officer, Nick Twork, acknowledged the investment, stating that while the company does not comment on individual investments, it appreciates the independent vote of confidence.
This investment comes amid significant organizational changes within Lucid Motors. Newly appointed CEO Silvio Napoli has initiated a major restructuring, including an 18% reduction in the workforce in June, aiming to simplify the company’s operations. This follows a similar round of layoffs earlier in the year, prior to Napoli’s leadership.
The Saudi Public Investment Fund (PIF) has been a major stakeholder in Lucid Motors since its initial investment in 2018, holding approximately 60% ownership following Lucid’s public listing in 2021. The PIF has continued to provide substantial financial support as Lucid strives to expand its market presence in the EV sector.
Prince Al Waleed bin Talal is known for his investments in various U.S. technology companies. Through his holding company, he was a significant shareholder in Twitter before its privatization and has also invested in companies like Snap and Deezer. His latest investment in Lucid Motors underscores the ongoing commitment of Saudi investors to the EV industry.
This development highlights the strategic importance of Lucid Motors within Saudi Arabia’s broader economic diversification plans. The Kingdom’s increased investment reflects confidence in Lucid’s potential to contribute to the global EV market and aligns with Saudi Arabia’s Vision 2030 initiative to reduce dependence on oil revenues by investing in sustainable technologies.
