Lucid spikes 98% on speculation Saudi investment fund may buy out remaining stake

Lucid Air
Lucid Motors

  • Lucid stock skyrocketed on Friday on speculation that Saudi Arabia’s Community Financial investment Fund would buy out the remaining stake.
  • Saudi Arabia’s PIF now owns 65% of Lucid, and has not confirmed if it will get the remaining shares.
  • Shares were halted 12 situations on the New York Stock Trade Friday afternoon due to improved volatility.

Lucid inventory skyrocketed on Friday on speculation that Saudi Arabia’s General public Investment decision Fund may well obtain out the remaining stake of the electric car maker.

Shares jumped as significantly as 98% to $17.81 intraday but later pared gains to shut up 43% at $12.87.

Speculation on the possible buyout arose from the site Betaville, according to Yahoo Finance. Trades on the inventory commenced to ramp up in the afternoon, leading the New York Inventory Trade to halt trading twelve occasions thanks to improved volatility.

Saudi Arabia’s PIF first invested $1.3 billion in Lucid in 2018, and it now owns about 65% of the shares today. The fund also acquired 41 million shares of Tesla around that time, but has given that offered off the stake in the rival EV maker.

The fund has not publicly confirmed if it will get the remaining shares of Lucid.

Formerly, Lucid’s stock value slid 76% from its all-time-higher of $55.21 in late 2021, mirroring the decline in other tech and EV stocks owing to growing inflation and intense fee hikes from the Fed.

The business is also envisioned to face amplified level of competition this year immediately after Tesla slashed selling prices on a number of of its styles, which is placing strain on other EV corporations to decreased rates.