Lucid's Power Surge: Why Stock Is Poised To Open Stronger Again Today

Lucid Group, Inc. LCID shares are surging in premarket trading, with the stock on track to open higher for a second consecutive day.

What Happened: In a recent SEC filing, Lucid, the California-based EV startup, disclosed that its majority owner, the Saudi Public Investment Fund, acquired 265.7 million shares at $6.83 per share, signaling a premium over Friday’s closing price of $5.55. 

This transaction could generate approximately $1.82 billion in gross proceeds for Lucid.

Following the purchase, the Saudi Public Investment Fund holds 1.367 billion shares with shared voting rights and 8.04 million shares with sole voting rights, resulting in a total ownership stake of 60.49%.

This private placement aligns with Lucid’s previous announcement to raise funds, aiming for $1.2 billion through a common stock offering and an additional $1.82 billion through the placement of shares to its Saudi promoter.

See Also: Best Electric Vehicle Stocks

Monday’s Catalyst: On Monday, Lucid shares experienced a strong early surge, reaching a peak gain of 14.8% before retracing some of the advances and closing at $5.55, up 1.46%.

The stock’s upward momentum was driven by the company’s partnership with British luxury automaker Aston Martin, wherein Lucid will supply powertrain and battery system technology in exchange for $232 million. 

Regarding this deal, Gary Black of Future Fund commented, “Aston Martin is effectively paying $70K per car for LCID's battery technology. That seems a bit rich to me.”

In premarket trading, Lucid shares climbed 5.41% to $5.85, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Why Lordstown Stock Is In Freefall Premarket Today