Why Is LCID Stock Soaring 23% Today?

• The prince’s spokesperson reportedly told Bloomberg that the purchases were made during a recent slump in LCID’s share price.
• Lucid already maintains close links to Saudi Arabia through its majority shareholder, the Public Investment Fund.
• Earlier this month, Lucid rejected reports that it was considering bankruptcy or a take-private transaction, noting that it has sufficient liquidity to carry its operations well into next year.

Shares of Lucid Motors (LCID) jumped as much as 29% on Tuesday after Saudi billionaire Prince Alwaleed bin Talal acquired a 5% stake in the electric vehicle maker.

At the time of writing, LCID stock pared some of the gains and was trading 23% higher.

The Prince’s LCID Stake

According to a filing with the U.S. Securities and Exchange Commission on Tuesday, the prince now beneficially owns 19.5 million shares of Lucid’s Class A common stock. The stake equates to exactly 5% of the class, based on 390.26 million shares outstanding as of April 29, the filing showed.

The prince’s spokesperson reportedly told Bloomberg that the purchases were made during a recent slump in LCID’s share price.

Lucid, based in California, already maintains close links to Saudi Arabia through its majority shareholder, the Public Investment Fund. PIF holds a majority stake of around 57% in Lucid Group, according to a company filing from late April. The stake is held primarily through Ayar Third Investment Company, a wholly owned PIF subsidiary.

Lucid’s Financial Standing

Earlier this month, Lucid rejected reports that it was considering bankruptcy or a take-private transaction, noting that it has sufficient liquidity to carry its operations well into next year.

The company also delivered a cease and desist letter to the publication that carried the bankruptcy rumors, stating that the company “unequivocally denies the central factual assertions” in the article. Lucid is now slated to provide a further update on its financials in its second-quarter earnings call scheduled for August 4.

The company, however, has faced significant headwinds. Earlier this month, the company reported second-quarter production of 4,774 vehicles and deliveries of 3,953 units— marking a modest year-over-year increase but short of analyst expectations amid slower-than-hoped demand for the new Gravity SUV. Financially, Lucid continues to face steep losses and negative gross margins despite revenue growth.

The company is currently attempting to ramp up growth under the leadership of CEO Silvio Napoli, who assumed the role in June. Napoli undertook a leadership overhaul recently and replaced CFO Taoufiq Boussaid with automotive finance veteran Alexander De Bock. He also appointed new executives for technology, customer, digital, and transformation roles, flattened the reporting structure by halving direct reports to the CEO, and eliminated the COO position.

These moves followed June layoffs of roughly 1,500 employees, about 18% of the workforce, and the removal of a second production shift at the Arizona plant, aimed at delivering roughly $158 million in annual savings.

The company has relied heavily on its PIF for support through it all. In late April 2026, Ayar purchased $550 million of Lucid’s Series C convertible preferred stock and expanded Lucid’s delayed-draw term loan facility by $500 million. Most recently, on July 6, Lucid drew $800 million under those existing facilities, converting committed credit into immediate cash.

How Did LCID Retail Traders React?

On Stocktwits, retail sentiment around LCID stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

A Stocktwits user highlighted that Lucid is now backed by major investors, including the PIF, the Prince, and also ride-hailing giant Uber Technologies.

LCID stock has fallen 25% year-to-date. 

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