Saudi Prince Alwaleed bin Talal takes 5% stake in Lucid

Lucid Group has been given a much-needed boost after Saudi Prince Alwaleed bin Talal acquired a $129.5 million stake in the struggling California-based electric vehicle maker.

Saudi Arabia’s Public Investment Fund, which is Lucid’s biggest shareholder, has poured more than $9 billion into the company as part of the kingdom’s attempts to become a hub for EVs and the battery industry.

But the loss-making automaker has become a laggard for the PIF, with its NASDAQ-listed shares falling 72% over the past year, forcing the company to fend off rumors of impending bankruptcy or a take-private deal.

Its shares surged 22% to their highest level since April following regulatory disclosure of Alwaleed’s direct purchase of 19.5 million shares, equivalent to a 5% stake in the company.

One of the Middle East’s richest people, Alwaleed, is estimated by Bloomberg to be worth $24.2 billion.

Earlier this month, Lucid acknowledged that it had brought in restructuring advisors from AlixPartners under new CEO Silvio Napoli, who has been cutting costs and jobs through an organizational review.