TLDR
- Lucid Group (LCID) stock jumped over 15% after Cantor Fitzgerald confirmed Saudi Arabia’s Public Investment Fund remains committed to the EV maker despite heavy losses
- The PIF holds more than 50% of Lucid and has invested over $9 billion in the company over eight years, though market cap had fallen to $3 billion
- Call options activity surged ahead of earnings, with traders showing bullish sentiment and driving up implied volatility on the stock
- Cantor Fitzgerald maintained its $21 price target, representing 116% upside potential from recent prices near all-time lows
- Lucid announced a partnership with Rockwell Automation for factory management systems at its Saudi plant and scheduled an Investor Day for March 12
Lucid Group stock climbed more than 15% on Wednesday after analysts at Cantor Fitzgerald said they met with the company’s biggest investor. The meeting appears to have calmed fears about the future of the struggling electric vehicle maker.
The rally came after the stock hit an all-time low of $9.50 the previous session. Shares had dropped about 65% in 2025 and lost 41% over the past three months before Wednesday’s rebound.
Cantor analyst Andres Sheppard wrote in a research note that his firm held direct conversations with Saudi Arabia’s Public Investment Fund. The PIF owns more than 50% of Lucid and has pumped over $9 billion into the company over eight years.
“Following our conversations, we come away more encouraged, and we believe that the PIF remains committed to Lucid over the long term, which we see as material,” Sheppard wrote. The note was obtained by EV news outlets.
Lucid’s market value had shrunk to roughly $3 billion. That’s about one-third of what the PIF has invested in the company. The drop raised questions about whether the Saudi fund would continue supporting the money-losing operation.
Sheppard said these doubts may have weighed on the stock price. “Historically, investors have wondered about the PIF’s commitment and willingness to continue backing the company financially, which may have affected Lucid’s valuation,” he wrote.
Options Traders Show Bullish Stance
Traders have been rushing into call options ahead of Lucid’s upcoming earnings report. The activity has driven up implied volatility on the stock. Call options give traders the right to buy shares at a set price, and heavy buying typically signals bullish expectations.
The options activity came as Lucid announced a new partnership with Rockwell Automation. The deal will bring FactoryTalk MES software to Lucid’s Saudi Arabia plant. Rockwell will also train staff at the facility. Analysts view the partnership as a step toward better production management.
New Partnerships and Investor Day on Horizon
Cantor Fitzgerald kept its $21 price target on Lucid stock. That implies 116% upside from Tuesday’s closing price. The firm expects the company to announce new partnerships this year.
“Furthermore, we expect LCID to pursue and potentially announce additional autonomy partnerships throughout 2026,” Sheppard wrote. He was referring to the robotaxi that Lucid unveiled at CES earlier this month.
Lucid received about $300 million from Uber Technologies earlier this year. The investment is part of a robotaxi program announced last July with autonomous vehicle startup Nuro.
Cantor also revealed that Lucid’s previously teased Investor Day will take place on March 12. The company is expected to share more details about its autonomy roadmap at the event. The year-to-date price performance shows Lucid down 7.95% with average daily volume of 8.6 million shares.
