Lucid Gets Royal Backing
Saudi Prince Alwaleed Discloses 5% Lucid Stake, Reinforcing Support Amid Restructuring
Anonymous
Key Points
1
Lucid’s restructuring under new CEO Silvio Napoli included a substantial workforce reduction, with an 18% cut in June aimed at simplifying operations.
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Ayar Third Investment Company, a Public Investment Fund affiliate, purchased $550 million of convertible preferred stock in April 2026 as part of a roughly $1.05 billion capital raise for Lucid.
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Prince Alwaleed bin Talal’s 5% stake equates to about 19.5 million Lucid shares in Class A stock, and remains separate from the Public Investment Fund’s majority ownership and control of the company.
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PIF has held a controlling, majority stake in Lucid since 2018, with more than half of voting power via direct holdings and Ayar Third Investment Company, and Lucid’s SPAC merger in 2021 helped raise about $4 billion for the company.
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Lucid’s stock has remained volatile; after the company hired restructuring adviser AlixPartners to review its business, the stock swooped down as much as 57% in a single session amid bankruptcy fears.
Saudi billionaire Prince Alwaleed bin Talal has disclosed a 5% stake in Lucid Motors, equal to about 19.5 million Class A shares, according to Electrek. The investment was made at a valuation below $2 billion — a steep drop for a company that once commanded far higher expectations in the electric vehicle market.
The prince announced the move on his X account, and markets responded fast. Lucid shares jumped as much as 25% on the news, according to Electrek. The purchase adds another layer of Saudi backing to a company that has leaned heavily on Gulf money to survive.
Saudi Royal Family Deepens Its Bet on Lucid
Prince Alwaleed's stake is separate from the Public Investment Fund's majority control of Lucid. PIF, Saudi Arabia's sovereign wealth fund, first invested in Lucid in 2018. It now holds more than half of Lucid's voting power through direct shares and its affiliate, Ayar Third Investment Company, according to TechCrunch.
In April 2026, Ayar bought $550 million in convertible preferred stock as part of a roughly $1.05 billion capital raise, TechCrunch reported. Lucid used that money to keep operations going as it burns through cash. The prince's new 5% stake adds a personal Saudi royal vote of confidence on top of that institutional backing.
Lucid's Stock Collapsed Before the Saudi Lifeline
Lucid's share price has been volatile for months. The company hired restructuring adviser AlixPartners to review its business, which spooked investors badly. The stock fell as much as 57% in a single session as bankruptcy fears spread, according to Whalesbook.
The prince's purchase helped reverse some of that damage. A 25% single-day rebound is significant, but shares are still trading at a valuation under $2 billion. That compares to the roughly $4 billion Lucid raised through its 2021 SPAC merger, according to Yahoo Finance.
Cost Cuts and Restructuring Under New CEO
Lucid brought in new CEO Silvio Napoli to lead a turnaround. In June, the company cut 18% of its workforce to reduce costs and simplify operations, according to TechCrunch. The goal is to reach mass-market demand without burning through cash faster than it can raise it.
The company still reports large losses each quarter. Lucid makes the Air luxury sedan and is developing the Gravity SUV. But production volumes remain low and profitability is not yet in sight. The Saudi money has bought Lucid more time — but not a clear path to profit yet.
What the Prince's Move Signals for Lucid's Future
Prince Alwaleed is one of the world's best-known investors. His past bets include early stakes in Twitter and Citigroup. His decision to buy into Lucid at under $2 billion signals he sees the stock as undervalued, according to Whalesbook.
Still, the risks are real. Lucid needs to scale production, cut losses, and compete against Tesla and a wave of cheaper EVs. Saudi money has kept it alive, but the company must eventually stand on its own. For now, the prince's purchase gives Lucid a fresh vote of confidence — and a brief moment of relief on Wall Street.
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