Lucid Group (NASDAQ:LCID) powered by 21.54 percent on Tuesday to finish at $7.90 apiece, after a Saudi prince’s backing that helped allay concerns about the electric vehicle-maker’s financial health.
In a regulatory filing on the same day, Lucid Group (NASDAQ:LCID) said that Saudi Prince Alwaleed Bin Talal Bin Abdulaziz acquired a 5 percent stake in the company, covering 19.5 million shares, amounting to $154 million, based on its closing price on Tuesday.
For illustration purposes only. Photo from Lucid Group
Bankruptcy, Takeover Rumors
The acquisition came weeks after Lucid Group (NASDAQ:LCID) reportedly considered bankruptcy or a takeover transaction, which the company immediately debunked.
Commenting on an exclusive report by an electric vehicle-focused website, Lucid Group (NASDAQ:LCID) CEO Silvio Napoli said in a LinkedIn post that the company generally does not comment on rumors. However, the claims were far from the facts “that they require a direct response.”
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period,” he said.
“My priority is clear: turn this company around. That is where the leadership team and I are focused,” he added.
Q2 Earnings Scheduled for Next Week
Investors are expected to get a clearer picture of the company’s financial health when it reports its earnings performance in the second quarter of the year next Tuesday, August 4. A conference call will be held after market close on the said date to elaborate on the results.
Seeking to reassure investors, Napoli said earlier that Lucid Group, Inc. (NASDAQ:LCID) currently has “sufficient liquidity” to fund its operations well into next year.
Hedge Fund Participation Drops
Institutional sentiment, however, notably weakened in the first quarter of the year.
Based on data from Insider Monkey, 23 hedge funds held stakes in Lucid Group, Inc. (NASDAQ:LCID) during the period, markedly fewer than the 27 funds in the quarter prior.
Collectively, the funds held $59.9 million worth of stake, also a marked drop from the $66.86 million quarter-on-quarter.
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