Prince Al Waleed Bin Talal Solidifies Saudi Dominance Over Lucid Motors via 5% Stake
Billionaire investor Prince Al Waleed bin Talal has acquired over 19 million shares in Lucid Motors, capitalizing on a July market dip. The move strengthens the Saudi royal family's grip on the U.S.-based electric vehicle manufacturer during a period of intense corporate restructuring.
Lucid Motors has received a minority investment from Prince Al Waleed bin Talal Al Saud, further consolidating Saudi Arabian influence over the California-based electric vehicle manufacturer. A Tuesday filing with the U.S. Securities and Exchange Commission confirms the billionaire purchased approximately 19 million shares, representing a 5% stake in the firm.
Strategic Timing Amidst Market Volatility
Prince Al Waleed disclosed via social media that the acquisition occurred when Lucid’s market capitalization fell below $2 billion. This valuation trough occurred on July 14, triggered by speculation regarding potential bankruptcy or a full privatization by Saudi Arabia’s Public Investment Fund (PIF). While Lucid management aggressively refuted those rumors, the resulting share price drop provided an entry point for the royal, whom his own website describes as the “Arabian Warren Buffett.”
Nick Twork, Lucid’s chief communications officer, characterized the purchase as an independent vote of confidence. This capital injection coincides with a volatile period for the automaker. Under newly appointed CEO Silvio Napoli, Lucid eliminated 18% of its staff in June to reduce organizational complexity, following a separate round of layoffs earlier this year.
Deepening Ties to the Kingdom
The acquisition expands an already heavy Saudi presence in Lucid’s capital structure. The PIF has maintained a majority stake of roughly 60% since the company’s 2021 SPAC merger, which generated $4 billion. Riyadh’s financial commitment to Lucid has been a primary lifeline as the startup attempts to scale production and compete in a crowded global EV market. Key milestones in this relationship include:
- A 2018 initial investment by the PIF following a failed attempt to take Tesla private.
- Consistent participation in subsequent share offerings and multibillion-dollar lending arrangements.
- A strategic focus on Lucid as the centerpiece of Saudi Arabia’s domestic automotive ambitions.
A Pattern of Tech Investment
This move fits Prince Al Waleed’s established strategy of targeted U.S. technology acquisitions. The Prince previously held a significant position in Twitter and eventually became its second-largest shareholder after Elon Musk transitioned the platform to private ownership. His current portfolio also includes stakes in Snap and the music streaming service Deezer. By backing Lucid, the Prince aligns his personal investment office with the broader Saudi national goal of diversifying its economy through high-tech manufacturing.
Source: Tech Crunch
