Lucid Group Inc (NASDAQ:LCID) shares are trading higher by 6.46% to $6.84 Thursday afternoon on continued strength after the company’s recent partnership announcement with Aston Martin. Additionally, the Saudi Public Investment Fund increased its stake in the company through a recent private placement.
What Happened?
Lucid’s majority owner, the Saudi Public Investment Fund, acquired 265.7 million shares at a premium price of $6.83 per share in a private placement transaction, generating approximately $1.82 billion in gross proceeds. This increases its ownership stake to 60.49%, with 1.367 billion shares having shared voting rights and 8.04 million shares with sole voting rights.
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The stock is also trading higher on upward momentum after the company on Monday announced a technology partnership with Aston Martin to integrate and supply Lucid’s electric vehicle powertrain and battery systems in contracts worth in excess of $450 million.
What Else?
Under this partnership, Aston Martin will gain direct access to Lucid’s exclusive electric powertrain technology, which encompasses the highly efficient twin motor drive unit, renowned battery technology and Wunderbox.
To obtain access to Lucid’s technologies, Aston Martin will compensate through a combination of Aston Martin shares and phased cash payments, while Lucid will become a shareholder in Aston Martin.
Furthermore, Lucid says the collaboration entails supply arrangements for Lucid’s powertrain components and systems, ensuring a steady provision of these essential elements to Aston Martin.
According to data from Benzinga Pro, LCID has a 52-week high of $21.78 and a 52-week low of $5.46.
