EV carmaker Lucid makes NASDAQ debut, stock jumps as much as 19%

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EV carmaker Lucid makes NASDAQ debut, stock jumps as much as 19%

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 EV carmaker Lucid makes NASDAQ debut, stock jumps as much as 19%
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Summary

  • In 2018, Saudi Arabia's Public Investment Fund (PIF) had invested over US$1 billion in Lucid. Now, Lucid’s US listing has come as a huge dividend for the Arab company.
  • Besides PIF, BlackRock (BLK) and some other companies also have made major investments in the company in February as part of the merger.
  • The Lucid stock closed at 6.3% higher to US$26.83 from the offering price on July 26.

The price of Lucid Group Inc. (NASDAQ: LCID) stock rose as much as 19% in its NASDAQ debut on Monday after its merger with the blank-check company Churchill Capital Corp IV.

Lucid had announced to go public in February. The value of the combined entity after the SPAC deal is estimated at US$24 billion.

In 2018, Saudi Arabia's Public Investment Fund (PIF) had invested over US$1 billion in Lucid. So, its US listing has come as a huge dividend for the company.

Besides PIF, BlackRock (BLK) and some other companies also have made major investments in the company in February as part of the merger. According to some analysts, around US$2.5 billion have been invested by various companies in Lucid in the run-up to the deal.

Also Read: Tesla’s revenue surge by record 98% in Q2, Phillips’ sales up 9%

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Lucid’s valuation

Analysts, however, have raised questions about Lucid’s sharp increase in value. Citing a market strategist, Reuters reported that it could be a big risk to investors to acquire a company with no revenue but with a large market capitalization. However, he expressed confidence in the company’s performance in the future.

Saudi Arabia's investment fund PIF manages a portfolio of US$400 billion.

The Lucid stock closed at 6.3% higher to US$26.83 from the offering price on July 26.

Lucid is based in Newark, California. The increasing demand for electric vehicles and tougher regulatory measures on emissions would promote the rapid growth of the US EV industry, experts say. The Biden administration also has vowed to push for green energy vehicles.

Also Read: Wall Street stocks end flat ahead of big tech earnings week

Some of Lucid’s competitors include Fisker (FSR) and Nikola (NKLA). Although Fisker has recorded growth in its share price in recent times, Nikola’s price declined.

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