Down 60%, Should You Buy the Dip on Lucid Stock?
Down a whopping 60% over the last 12 months, investors in Lucid Motors (NASDAQ: LCID) haven't had much to smile about recently. The electric automaker is reeling from a combination of epic cash burn and rising competition in the EV industry. Should investors bet on the company despite these challenges, or stay far away? Let's dig deeper.
In late January, Lucid's stock rose substantially amid speculation that Saudi Arabia's sovereign wealth fund could be moving to take the company private. The oil-rich state already owns 65% of Lucid's shares. Taking full control would involve buying the remainder -- likely at a considerable premium. But so far, the Saudi investment fund has decided to only increase its Lucid stake by 9.2% to 1.11 billion shares, suggesting the rumors may be overblown.
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Source Fool.com
