Let's say a rumor spreads that your favorite local restaurant is about to close. Most people would stay away. But a billionaire walks in and buys a big piece of the place.
Lucid has been trying to scale production of its luxury EV sedan, the Air, but has faced supply chain issues and lower-than-expected demand. The company's cash burn rate has worried investors, prompting the recent restructuring.
According to a post on X, when Lucid's market cap was under $2 billion, Prince Al Waleed bought shares totaling slightly more than 19 million. That was on July 14.
Just before the purchase, an unconfirmed report claimed Lucid was considering bankruptcy or a deal to go private. The stock dropped.
Lucid denied the report. The prince stepped in. Nick Twork, Lucid's chief communications officer, put it this way: "We don't comment on individual investments, but we are aware and appreciate the independent vote of confidence."
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This is not the first time Saudi money has backed Lucid. The Public Investment Fund (PIF), which owns about 60% of Lucid, has held that majority stake since the company went public via a SPAC merger in 2021. With the prince's new stake, Saudi ownership increases, but the exact new total is not disclosed in the filing.
The prince's bet comes at a messy time for Lucid. The company is in the middle of a major overhaul under a new CEO, Silvio Napoli. In June 2026, Napoli reduced Lucid's employee count by 18% - and that came after another large layoff earlier in the same year before Napoli took over. His goal, he said, is to "simplify the company."
Layoffs that big usually mean one thing: a company is burning cash faster than it likes and needs to trim the fat. For Lucid, the challenge is familiar. Lucid produces EVs, yet it has found it difficult to attract a broad base of electric vehicle consumers domestically and internationally. The restructuring is an attempt to get costs under control while it still has time.
The bankruptcy rumor that spooked the stock was just that - a rumor. The prince clearly disagreed with the panic. He saw a stock that had been beaten down and decided to buy.
Lucid went public in 2021 through a SPAC merger, raising $4 billion. Since then, the stock has fallen from its early highs as the EV market cooled and competition got tougher. The prince's purchase might look like a signal that the stock is cheap. But a 5% stake from a billionaire does not change Lucid's basic math: it needs to sell more cars and turn a profit.
The good news is that Lucid has deep pockets behind it. The Saudi PIF is a massive sovereign wealth fund, and Prince Al Waleed is one of the world's most famous investors. Together, they hold a majority stake. That gives Lucid a financial cushion most startups would envy.
The bottom line: For everyday investors, Lucid is still a high-risk bet. The prince's vote of confidence is a positive sign, but the restructuring and the layoffs show the company is in a tough spot. Watch the next earnings report.
If Napoli's cost cuts start showing results and sales pick up, the stock could find a floor. If not, even a prince's money cannot buy a turnaround.
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