Lucid Group and Lordstown Motors continued to make big moves off low bases Thursday in a busy week for EV stocks of startup companies.
Saudi Arabia's Public Investment Fund (PIF), Lucid's majority shareholder, plowed $1.8 billion more into Lucid shares, a filing revealed Tuesday. That news came a day after Lucid, a luxury EV startup, announced a technology partnership with Britain's Aston Martin. On Tuesday, Lordstown filed for Chapter 11 bankruptcy protection after failing to resolve a conflict with a key manufacturing partner.
Although divergent, the news from the pair of startups underscored the importance of robust alliances with larger players in the business of making electric vehicles, which is highly capital intensive.
Saudi Backer Funds Lucid
The Saudi PIF sovereign wealth fund acquired roughly 265.7 million shares of Lucid through a private placement at an average price per share of $6.83, a regulatory filing showed Tuesday. That resulted in a hefty investment valued at $1.8 billion.
The latest purchase forms part of the $3 billion stock offering Lucid had already announced on May 31. It raised the remaining $1.2 billion through an offering of 173 million shares of its common stock.
PIF continues to maintain a 60.5% stake in Lucid stock.
On Monday, Lucid said it will supply electric powertrains and battery systems to Aston Martin. The iconic British sports-car maker will use Lucid's EV technology for its first and future all-electric vehicles.
Lordstown Troubles With Partner
On Tuesday, Lordstown announced that it would put itself up for sale and sue contract manufacturer Foxconn. The dispute stems from investments the Taiwanese company was supposed to make in the EV startup.
In May 2022, Foxconn agreed to invest up to $170 million in Lordstown, taking a 19.3% stake. It earlier bought an Ohio factory, which once belonged to General Motors, from Lordstown.
Foxconn responded Tuesday by saying it was suspending negotiations with Lordstown and reserving the right to pursue legal action of its own.
Lucid Stock, Lordstown Motors
Shares of Lucid popped 7% to 6.88 on the stock market today. LCID stock has rocketed nearly 26% for the week so far, rebounding from a 52-week low of 5.46, reached last Friday. Shares had crashed June 1 on the stock sale announcement.
Lordstown Motors shares rallied 6.6% to 2.25 Thursday but has tanked nearly 25% for the week so far. RIDE stock hit a record low Tuesday.
Nikola Suspects Foul Play In EV Incident
Startup peer Nikola recovered further from unfavorable news. Shares popped 8.6% to 1.26 Friday, extending its rally to a third day after plunging nearly 15% Monday. NKLA stock is now down just 2.3% for the week so far.
Nikola revealed via Twitter last Friday that several of its semitrucks caught fire at its Phoenix headquarters due to suspected foul play.
In its tweet Friday, Nikola said an investigation is underway. It promised additional information as it becomes available.
