In January 2023, rumors were circulating around the internet that the PIF wanted to buyout all remaining LCID shares and take the company private.
The Infamous Saudi Post Tweet
The Saudi Post tweeted that the PIF intends to buyout LCID shareholders and control all of the remaining shares by taking Lucid private.
The tweet was written in Arabic so here’s the translation in English:
He plans to fully acquire the “Lucid” car company for electric cars and thus Saudi Arabia will become one of the largest producers of electric vehicles.
According to Fintel, The PIF’s affiliate company Ayar Third Investment owns around 61% of LCID common stock. It’s possible that Ayar could make a bid to take the company private in February.
The Saudi PIF Tried to Take Tesla Private in 2018
In 2018, Elon Musk tweeted that a private group wanted to take Tesla private at $420 per share. That private group was none other than the Saudi PIF.
Elon Musk got in hot water for posting that tweet and had to appear in court to clear his name. Luckily, the case was dismissed by a US judge and Musk didn’t face any criminal charges.
The PIF Offered $25 per share (split adjusted) to Take Tesla Private
The PIF tried to take Tesla private at $420 per share ($25 split adjusted) so that seems like a reasonable price for Lucid stock.
However, Tesla was a $86 billion company during that time in 2018. Lucid is worth $16 billion currently and would trade at around $63 per share at a $86 billion valuation.
Since the PIF already owns 61% of all common stock, Ayar Third Investment would only need to offer an additional $8 billion to acquire the remaining shares. Of course, some LCID shares would be allocated to insiders such as Lucid CEO Peter Rawlinson and other key executives.
$25 to $63 Looks Like a Realistic Buyout Target for Remaining Shares
My guess is that $25 is a low estimate while $63 would be on the high range. The Saudi PIF has deep pockets and could pay whatever it takes to fully acquire Lucid Motors.
No one knows for sure what will happen but it looks like February 2023 will be an interesting month for LCID shareholders.