Lucid Group's electric dreams, A Saudi takeover in the works?
Lucid Group's shares jumped 43% on Friday following speculation that Saudi Arabia's Public Investment Fund (PIF) may be looking to buy out the electric vehicle maker, which is already majority-owned by the PIF.
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Staff or Guest writer for The Dog of Wall Street.
2023-01-29 11:29

The recent surge in Lucid Group's (NASDAQ: LCID) shares is nothing short of electrifying. The stock shot up 43% on Friday, after market speculation that Saudi Arabia's Public Investment Fund (PIF) was looking to buy out the electric vehicle maker. I can't blame investors for getting excited - when you hear rumors that a sovereign wealth fund is looking to take over your stock, it's bound to get your heart racing.

Lucid Group's electric dreams, A Saudi takeover in the works?

But before we all start throwing our money at Lucid, it's important to remember that this is all just speculation at this point. The "uncooked" alert that originated the rumor came from deals website Betaville, which is known for its market gossip. Lucid and PIF have both declined to comment, and let's be honest, it wouldn't be the first time a rumored deal fell through. In 2018, PIF was reportedly interested in taking Tesla private, but that deal never materialized.

Furthermore, Lucid has had its fair share of struggles recently. The company has been struggling to deliver its sleek Air luxury EVs after delivering only 4,369 vehicles last year. And with Tesla cutting prices, it's going to be tough for money-losing startups like Lucid to grab a share of the market in an industry that's already competing for shrinking consumer wallets.

But here's the thing, while Lucid may have its challenges, it's important to remember that this is still a company with a lot of potential. PIF first invested $1.3 billion in Lucid in 2018, and now owns around 65% of the shares. And let's not forget, short sellers dealt a mark-to-market loss of $685 million with Lucid's shares spike on Friday. That's a pretty strong signal that there's something worth watching here.

So, while it's important to approach this rumor with a healthy dose of skepticism, it's also worth keeping an eye on Lucid. There's a lot of speculation and uncertainty right now, but as the old saying goes, where there's smoke, there's usually fire. And with Lucid, there's definitely smoke.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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Staff or Guest writer for The Dog of Wall Street.

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Last updated2022-12-09

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