Lucid Group shares surge on $1.5 billion Saudi investment

Lucid Group (LCID) shares have increased following the announcement of second-quarter results and a $1.5 billion funding commitment from Ayar Third Investment Co., an affiliate of the Public Investment Fund of Saudi Arabia. This funding will be utilized to build a factory in Saudi Arabia, capable of producing 150,000 vehicles annually, and to support the production of Lucid’s new Gravity SUV.

In the second quarter, Lucid reported revenue of $200.6 million, surpassing analysts’ expectations, but posted a loss of 34 cents per share, wider than forecasts according to Visible Alpha.

Shares of Lucid gained 13% at the open on August 6 but had retreated to a 6% increase, standing at $3.18 by early afternoon. Despite the rise, the stock is down about 25% so far in 2024.