Shares of Lucid Motors, the luxury electric vehicle manufacturer backed by Saudi Arabia's Public Investment Fund (PIF), have surged more than 90 per cent since the start of this year amid speculation that the sovereign wealth fund plans to buy out the company.
Shares of the California-based company have jumped more than a third since January 23 through to the close of trading on Monday, according to market data.
That made Lucid the third-highest gainer and the sixth most traded stock on the Nasdaq on Friday, after speculation that appeared to have started on the daily deals website Betaville.
In pre-market trading alone on Monday, Lucid's volume surpassed 17 million; the company's average session trading volume is about 30 million. The stock eventually pared gains, down 1.87 per cent in after-hours trading.
However, the company's stock price is down more than 60 per cent from a year ago. For all of 2022, it plunged 84 per cent, worse than Tesla's 70 per cent plunge amid chief executive Elon Musk's contentious takeover of Twitter.
Lucid has not commented on the speculation. The PIF, Saudi Arabia's sovereign wealth fund that owns 65 per cent of Lucid, did not respond to a request for comment from The National.
The global EV market continues to grow amid a government and societal shift towards energy conservation, with both the consumer and commercial verticals tapping into the technology's potential.
Innovation and sustainability are among the key pillars of Saudi Arabia's Vision 2030 programme, a major economic diversification drive to reduce its reliance on oil and tap into other high-growth industries.
The continuing focus on more environmentally friendly vehicles presents an opportunity for EV brands and their investors. Saudi Arabia, the Arab world's biggest economy, aims to boost its EV production and tap into this potential.
The global EV market is expected to expand to more than 39.2 million units by 2030, from about 8.15 million in 2022, a near 22 per cent compound annual growth rate (CAGR), according to data from research firm Markets and Markets.
The sector's value is forecast to hit more than $1.1 trillion by 2030, from an estimate of $208.6 billion in 2022, at a CAGR of more than 23 per cent, a study from Precedence Research showed.
Having Lucid in its green arsenal will boost Saudi Arabia's goals of becoming a leader in the EV industry. The kingdom announced Ceer, its first EV maker, in October, a partnership with Foxconn, the Taiwanese semiconductor maker and major parts supplier to Apple.
Later that month, Ceer bought land worth $96 million in King Abdullah Economic City, where it plans to build its factory.
The PIF bought into Lucid in 2018, investing $1 billion in the company that is competing with Tesla.
In February 2021, the PIF, US investment firm BlackRock and others poured an additional $2.5 billion into Lucid.
Last year, Lucid chairman Andrew Liveris said the company planned to build a factory in Saudi Arabia by 2025 or 2026.
“Now that we are successfully producing and selling cars in the US, our attention is turning to this factory here,” he said at that time. The factory aims to produce 155,000 cars per year.
In August, Lucid announced plans to raise $8 billion through new offerings as the company aims to boost production.
Lucid's market capitalisation on Monday was at $21.63 billion, compared with Tesla's $522.22 billion value.
Lucid makes the $169,000 Air Dream Edition limited production saloon car. However, it has been struggling to deliver the vehicles having shipped out only 4,369 in 2022.
Its three other models are the Air Pure, Air Touring and Air Grand Touring.
The cut-throat competition in the EV market is also making things more challenging. Tesla's price cuts, which the car maker made to boost sales, are also preventing Lucid and other smaller players from cornering market share.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
RESULTS
6.30pm: Emirates Holidays Maiden (TB) Dh 82,500 (Dirt) 1,900m
Winner: Lady Snazz, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Arabian Adventures Maiden (TB) Dh 82,500 (D) 1,200m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Emirates Skywards Handicap (TB) Dh 82,500 (D) 1,200m
Winner: Rich And Famous, Royston Ffrench, Salem bin Ghadayer.
8.15pm: Emirates Airline Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Rio Angie, Sam Hitchcock, Doug Watson.
8.50pm: Emirates Sky Cargo (TB) Dh 92,500 (D) 1,400m
Winner: Kinver Edge, Richard Mullen, Satish Seemar.
9.15pm: Emirates.com (TB) Dh 95,000 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh289,000
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.5-litre%20twin-turbo%20V6%20%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E456hp%20at%205%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E691Nm%20at%203%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E10-speed%20auto%20%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E14.6L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh349%2C545%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
First Person
Richard Flanagan
Chatto & Windus
Apple product price list
iPad Pro
11" - $799 (64GB)
12.9" - $999 (64GB)
MacBook Air
$1,199
Mac Mini
$799
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
Teams
Pakistan: Sarfraz Ahmed (captain), Mohammad Hafeez, Sahibzada Farhan, Babar Azam, Shoaib Malik, Asif Ali, Shadab Khan, Shaheen Shah Afridi, Usman Khan Shanwari, Hasan Ali, Imad Wasim, Faheem Ashraf.
New Zealand: Kane Williamson (captain), Corey Anderson, Mark Chapman, Lockie Ferguson, Colin de Grandhomme, Adam Milne, Colin Munro, Ajaz Patel, Glenn Phillips, Seth Rance, Tim Seifert, Ish Sodhi, Tim Southee, Ross Taylor.
Bharat
Director: Ali Abbas Zafar
Starring: Salman Khan, Katrina Kaif, Sunil Grover
Rating: 2.5 out of 5 stars
COMPANY%20PROFILE
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THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Rating: 1.5/5
A list of the animal rescue organisations in the UAE
The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
KILLING OF QASSEM SULEIMANI
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
The five pillars of Islam
Empire of Enchantment: The Story of Indian Magic
John Zubrzycki, Hurst Publishers
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
Match info
Manchester United 1
Fred (18')
Wolves 1
Moutinho (53')
Frankenstein in Baghdad
Ahmed Saadawi
Penguin Press
The Dictionary of Animal Languages
Heidi Sopinka
Scribe
