Lucid spiked 98% thanks to speculation that the Saudi investment fund could buy all the remaining shares
- lucid Shares jumped on Friday on speculation that Saudi Arabia’s Public Investment Fund would buy up the remaining shares.
- Saudi Arabia’s PIF currently owns 65% of Lucid’s shares and has not confirmed whether it will buy the remaining shares.
- Shares were halted 12 times on the New York Stock Exchange on Friday afternoon due to increased volatility.
Lucid shares soared on Friday on speculation that Saudi Arabia’s Public Investment Fund could buy up the rest of the shares. tram producer.
Shares rallied as much as 98% to $17.81 on the day but then pared gains to close up 43% at $12.87.
Speculation about possible acquisition arose from the Betaville website, according to yahoo finance. Trading on shares started to increase strongly in the afternoon, leading New York Stock Exchange suspends trading twelve times due to increased volatility.
Saudi Arabia’s PIF first invested $1.3 billion in Lucid in 2018, and the company now owns about 65% of the shares today. The Fund also purchased 41 million shares of Tesla around that time, but later sold off a stake in the rival electric vehicle maker.
The fund has yet to publicly confirm whether it will purchase the remaining shares of Lucid.
Previously, Lucid’s share price was down 76% from its all-time high of $55.21 at the end of 2021, reflecting a decline in other tech and electric vehicle stocks driven by rising inflation. increased and the Fed raised interest rates sharply.
The company is also expected to face increased competition this year after Tesla discounts some of its modelsthis is putting pressure on other EV companies to lower prices.