Lucid Group Stock Surges as Major Saudi Backer Reaffirms Long-Term Financial Support
Newark, Thursday, 22 January 2026.
Cantor Fitzgerald’s confirmation of Saudi Arabia’s continued backing drove a 15% rally, a critical lifeline for Lucid given the sovereign wealth fund already owns a controlling 50% stake.
Market Reaction and Analyst Confidence
On Wednesday, January 21, 2026, shares of Lucid Group (LCID) experienced a significant resurgence, climbing over 15% in early trading [1]. This rally was precipitated by a research note from Cantor Fitzgerald, released following discussions with the Saudi Public Investment Fund (PIF), which reaffirmed the sovereign wealth fund’s long-term commitment to the luxury electric vehicle manufacturer [1][5]. The assurance provided a much-needed boost to investor sentiment, particularly after the stock had touched a new all-time low of $9.53 just a week prior on January 13 [2]. Cantor Fitzgerald analyst Andres Sheppard emphasized that the firm emerged from conversations with the PIF “more encouraged,” viewing the continued support as material for the automaker’s future [1][2].
Valuation Disconnect and Price Targets
Despite the recent volatility, Cantor Fitzgerald maintained a bullish price target of $21 per share for Lucid [1][2]. Given the stock’s recent trading levels, this target implies an upside potential of over 110% [1]. The disparity between Lucid’s market valuation and the capital invested in it has become stark; as of Tuesday, January 20, the company’s market capitalization stood at approximately $3 billion [1]. This figure represents roughly one-third of the more than $9 billion the PIF has invested in Lucid over the past eight years [1][2]. The sovereign fund currently holds a stake exceeding 50% in the company, underscoring its pivotal role in Lucid’s capital structure [2].
Liquidity and Financial Health
Financial stability remains a focal point for Lucid as it navigates a capital-intensive growth phase. The company reported total liquidity of approximately $5.5 billion, a sum that includes $3 billion in cash and investments reported in the third quarter, alongside various credit facilities [2]. Notably, in November 2025, the PIF agreed to increase a delayed draw term loan credit facility from $750 million to approximately $2 billion, effectively bolstering Lucid’s liquidity by nearly $1.3 billion [2]. This financial runway is critical as the company contends with heavy operating losses and relies on debt and equity financing to fund its expansion [4].
Operational Milestones and Future Roadmap
Beyond financial engineering, Lucid is demonstrating operational progress. The company’s fourth-quarter performance exceeded expectations, with production reaching 8,412 vehicles—surpassing the consensus forecast of 7,537—and deliveries totaling 5,345 vehicles [2]. Looking ahead, Lucid has outlined ambitious plans to diversify its revenue streams. Earlier in 2026, the company secured an investment of approximately $300 million from Uber Technologies to support its robotaxi program [1]. This initiative aims to deploy over 20,000 Lucid Gravity electric SUVs as robotaxis over the next six years, with an initial rollout targeted for late 2026 or early 2027 [1].
Strategic Manufacturing and Risks
Lucid is also refining its manufacturing strategy to mitigate geopolitical risks. The company plans to begin production of a new midsize model in late 2026, with a significant portion of manufacturing slated for Saudi Arabia to circumvent U.S. tariffs [1]. However, the path forward is not without hurdles. The stock suffered a decline of approximately 65% throughout 2025, leading to a 1-for-10 reverse stock split to maintain listing compliance and stabilize the share price [1][3]. Furthermore, industry analysts have warned of a “winter mode” for the EV sector following the expiration of U.S. federal tax credits, suggesting that Lucid must achieve profitability on its lower-priced models to avoid further shareholder dilution [4]. Investors are now looking toward the upcoming Investor Day on March 12, 2026, for further clarity on the company’s autonomy roadmap and future product teasers [1].