Electric vehicle maker Lucid Group (NASDAQ:LCID) managed to land a substantial new investment recently from an unlikely source: the Saudi Arabia Public Investment Fund. Despite this new influx of cash, however, Lucid stock lost some ground. Nonetheless, it made a hefty slug of that back in Wednesday afternoon’s trading session.
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The Public Investment Fund put in nearly $1 billion by itself. Several other investors joined it and brought the total to almost $1.5 billion. Just yesterday, Lucid Group shares slipped to $6.18, which was the lowest point that Lucid saw since its public debut back in June. The Saudi fund’s buy-in was sufficient to make it the majority shareholder of the company.
Reports noted that, before the latest investment, Lucid Group had close to $3.85 billion in cash on hand. This latest investment would thus increase its cash position to over $5 billion and “…further strengthen its balance sheet and liquidity position.”
Despite this new investment, Wall Street is largely split on the company’s overall future. Analyst consensus currently calls Lucid Group a Hold, with a nearly-perfect split of Buy, Hold, and Sell recommendations. In addition, the stock has 130.49% upside potential, thanks to its average price target of $14.74.
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