Lucid Stock Is Crashing Hard And Leaves Retail Wondering If Saudi PIF Buyout Is A Good Exit Strategy

• Shareholders will vote on June 4 to expand the 2021 stock incentive plan by 23.5 million shares for incoming CEO Silvio Napoli.
• Operational challenges persist, including production scaling issues, workforce cuts, and sustained losses.
• Some traders suggested that Lucid’s $2 billion market cap could make a PIF takeover scenario feasible.

Shares of Lucid Group, Inc. (LCID) hit fresh record lows on Monday amid prolonged weakness in the stock, prompting some retail investors to call for a potential takeover by its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF).

LCID stock slid over 5% on Friday to end at $5.93, while shares have crashed more than 76% over the past year.  

Lucid Seeks Shareholder Approval For CEO Equity Plan

Lucid said last week in a proxy filing that shareholders will vote on five proposals at a June 4 annual meeting, including the election of nine directors, ratification of KPMG as independent auditor, and an advisory vote on executive compensation.

Investors will also vote on an amendment to the company’s 2021 Stock Incentive Plan that would add 23.5 million shares to the pool, increasing total authorized equity grants to 61.4 million shares. The additional headroom is allocated to compensate the incoming CEO, Silvio Napoli, approved earlier this month.

Saudi PIF Support Remains Key For Lucid

Lucid Board Chairman Turqi Alnowaiser, who also serves as Deputy Governor and Head of International Investments at PIF, shared his strategy for Lucid in a letter to shareholders accompanying the proxy filing.

“We have taken important steps to strengthen our balance sheet and support our path to scale and profitability,” Alnowaiser said. He added that the new partnerships and capital measures will accelerate Lucid’s “speed to market.”

The sovereign wealth fund remains Lucid’s largest shareholder with a 50% stake and has played a major role in the company’s financing. The fund recently invested $550 million through its affiliate, Ayar Third Investment Company, as part of a broader $1.05 billion capital infusion, including a registered public offering and additional funding from Uber.

Uber also recently committed to purchasing at least 35,000 Lucid units as part of an autonomous mobility partnership with Nuro.

Retail Traders Float PIF Takeover Scenario

However, retail sentiment on Stocktwits remained ‘extremely bullish’ over the past week, with message volumes surging over 1,100% in 24 hours amid growing retail speculation about a potential takeover.

Several traders argued that the company’s $2 billion market cap now places it within reach of a full buyout, with one saying that the valuation looks like “the price the Saudis would look to buy them fully out for.”

Another investor said that the stock may be pushed toward the $5 to $7 range before a takeover offer emerges, adding that “almost all bulls are screwed” if the strategy is to lower the moving averages ahead of a buyout premium.

Meanwhile, a separate user noted that the stock has been “hitting ATLs [all-time lows] every single day for more than 2 weeks with no end in sight,” questioning whether the decline comes from “unsustainable cash burn with no mainstream vehicle in production for at least another year.”

Others highlighted PIF's role in Lucid’s operations, noting the chairman’s senior role at the sovereign wealth fund and the presence of multiple PIF directors on the board. One trader added that “this is by design,” while another said simply that “PIF needs to take this private.” 

Losses And Weak Demand Pressure LCID

Lucid’s prolonged losses follow a difficult stretch for the EV maker marked by production challenges, workforce cuts and sustained operating losses. The firm has struggled to scale output in a volatile demand environment after supply-chain disruptions, tariff pressures and broader policy changes weighed on the sector through last year.

The company previously projected first-quarter revenue between $280 million and $284 million, alongside an operating loss of about $1 billion. Production guidance of 25,000 to 27,000 vehicles for the year also came in below earlier expectations. Lucid currently relies heavily on its premium Air sedan and Gravity SUV lineup, with its lower-priced midsize platform not expected to enter production until later in 2026.

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