From Barchart: 2024-04-12 10:51:55

Three major EV startups, Lucid Group (LCID), Rivian (RIVN), and VinFast (VFS), hit record lows due to a price war initiated by Ford’s lowered prices on its F-150 Lightning pickup. Lucid reported a $3.1 billion operating loss in 2023, worsening from $2.6 billion in 2022.

Amidst cash concerns and investor reluctance, only Lucid has been propped up by Saudi Arabia’s Public Investment Fund (PIF) through massive investments, totaling over $3 billion from 2021 to 2023. PIF’s steady support contrasts the shaky financial grounds of other EV startups.

PIF’s potential acquisition of Lucid Motors, holding 60% of common stock and a substantial amount of convertible preferred stock, could be strategic for Saudi Arabia’s clean energy initiatives. Lucid’s contribution to the country’s EV manufacturing plans makes a buyout increasingly viable at current low price levels.

A Saudi buyout of Lucid Group could enhance its financial stability and remove public scrutiny, allowing the company to focus on car production without stock price pressures. The move could reassure potential buyers concerned about the longevity of startup EV companies post numerous bankruptcies in the sector.



Read more at Barchart: As Lucid Motors Stock Falls to Record Lows, Is a Saudi Buyout the Last Resort?