Lucid Group stock surges 24% on Saudi prince investment

Investing.com -- Lucid Group (NASDAQ: LCID) shares rose 24% Tuesday following disclosure that Saudi Prince Alwaleed bin Talal Al Saud acquired a 5% stake in the electric vehicle maker.

The prince purchased 19.5 million shares valued at $129.5 million, according to a regulatory filing Tuesday. The purchases were made during a recent decline in Lucid's stock price, the prince's spokesperson said.

The investment comes weeks after Lucid dismissed bankruptcy rumors but acknowledged it brought in restructuring advisers from AlixPartners. That disclosure earlier this month triggered a single-day share plunge that at one point reached 57%.

Lucid shares have recovered from their historic low on July 14, rising almost 45% from that level before Tuesday's gains.

The stake acquisition represents a vote of confidence in the loss-making automaker as it navigates financial challenges.

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