$LCID PIF Comes To The Rescue Again
Plagued with production issues and declining demand, Lucid Group, Inc. (NASDAQ: LCID) is attempting to turn around its business to compete in the EV space with the assistance of its majority shareholder – the PIF. With the stock trading at an all-time low, the PIF might have helped boost the LCID stock price as it could be the reason for LCID’s recent deal with Aston Martin (LSE: ALM) – another PIF investment. This deal comes at the same time as the closing of the company’s $1.8 billion private placement with the PIF that might have caused LCID to rebound from its sharp fall. As this deal is further proof of the PIF’s commitment to fully back the company, LCID stock could be poised to soar this week and rebound near its pre-offering levels.
LCID Fundamentals
Throughout the LCID production saga, the PIF has been by LCID’s side constantly aiding in its development by providing deals, Middle Eastern access, and funds. That said, the most recent example of this could be the recent LCID and Aston Martin partnership. The PIF’s position as Aston Martin’s second-largest shareholder and LCID’s majority shareholder might have allowed it to broker such a deal between both companies.
According to this partnership, LCID will gain a 3.7% stake in Aston Martin in addition to $450 million in phased cash payments. In exchange, LCID will provide Aston Martin with access to LCID’s leading electric powertrain technology to power Aston Martin’s battery electric vehicles, as well as technical support from LCID in integrating its technology into Aston Martin’s new EV platform and the supply of LCID components.
In this way, LCID gains a significant asset with the ownership stake in Aston Martin and a new revenue stream from the contracts it will receive from Aston Martin. At the same time, Aston Martin will be one step closer to producing its first EV in 2025. Based on this, the PIF proves once again its commitment to LCID which might make the sharp dip on the latest offering an overreaction by investors. Having said that, this deal has another striking feature that could cause the stock to soar. Its timing.
The $1.8 billion private placement LCID announced with the PIF is expected to close on June 26 which could have seen the stock witness a post-offering pump given that LCID is trading at an all-time low. By announcing this deal, LCID stock is poised to regain investors’ attention which could allow the stock to start rebounding to its pre-offering levels with the expected buying pressure. In light of this, adding LCID at its all-time low could prove to be profitable for investors.
Technical Analysis
LCID stock is in a neutral trend and is trading in a sideways channel between $5.46 and $6.13. Looking at the indicators, LCID is trading below the 200, 50, and 21 MAs which are bearish indications. Meanwhile, the RSI is oversold at 22 and the MACD is approaching a bullish crossover. With this in mind, there is a gap near $7.66 that could be filled soon as the stock recovers from its sharp drop.
As for the fundamentals, LCID’s deal with Aston Martin – which the PIF is likely to have facilitated – is a major catalyst since it provides LCID with a significant asset in its stake in Aston Martin and the phased cash for LCID’s battery technology. Moreover, LCID’s $1.8 billion private placement with the PIF is expected to close on June 26 which could see the stock witness a post-offering pump.
Given the timing of the Aston Martin deal and the PIF’s constant backing of the company, LCID stock might be poised to soar this week and start recovering from its dip. For these reasons, the current PPS could prove to be a profitable entry for long-term investors – especially with LCID trading at an all-time low.
LCID Forecast
With LCID trading at an all-time low, the stock appears to be poised for a major run this week following the PIF’s latest help. Through the company’s deal with Aston Martin, LCID is adding another asset with its Aston Martin stake and a new revenue stream from the $450 million in contracts. Given that this significant deal coincides with the closing of the $1.8 billion private placement with the PIF, LCID stock appears to be set to rebound near pre-offering levels this week.
LCID Fundamentals
Throughout the LCID production saga, the PIF has been by LCID’s side constantly aiding in its development by providing deals, Middle Eastern access, and funds. That said, the most recent example of this could be the recent LCID and Aston Martin partnership. The PIF’s position as Aston Martin’s second-largest shareholder and LCID’s majority shareholder might have allowed it to broker such a deal between both companies.
According to this partnership, LCID will gain a 3.7% stake in Aston Martin in addition to $450 million in phased cash payments. In exchange, LCID will provide Aston Martin with access to LCID’s leading electric powertrain technology to power Aston Martin’s battery electric vehicles, as well as technical support from LCID in integrating its technology into Aston Martin’s new EV platform and the supply of LCID components.
In this way, LCID gains a significant asset with the ownership stake in Aston Martin and a new revenue stream from the contracts it will receive from Aston Martin. At the same time, Aston Martin will be one step closer to producing its first EV in 2025. Based on this, the PIF proves once again its commitment to LCID which might make the sharp dip on the latest offering an overreaction by investors. Having said that, this deal has another striking feature that could cause the stock to soar. Its timing.
The $1.8 billion private placement LCID announced with the PIF is expected to close on June 26 which could have seen the stock witness a post-offering pump given that LCID is trading at an all-time low. By announcing this deal, LCID stock is poised to regain investors’ attention which could allow the stock to start rebounding to its pre-offering levels with the expected buying pressure. In light of this, adding LCID at its all-time low could prove to be profitable for investors.
Technical Analysis
LCID stock is in a neutral trend and is trading in a sideways channel between $5.46 and $6.13. Looking at the indicators, LCID is trading below the 200, 50, and 21 MAs which are bearish indications. Meanwhile, the RSI is oversold at 22 and the MACD is approaching a bullish crossover. With this in mind, there is a gap near $7.66 that could be filled soon as the stock recovers from its sharp drop.
As for the fundamentals, LCID’s deal with Aston Martin – which the PIF is likely to have facilitated – is a major catalyst since it provides LCID with a significant asset in its stake in Aston Martin and the phased cash for LCID’s battery technology. Moreover, LCID’s $1.8 billion private placement with the PIF is expected to close on June 26 which could see the stock witness a post-offering pump.
Given the timing of the Aston Martin deal and the PIF’s constant backing of the company, LCID stock might be poised to soar this week and start recovering from its dip. For these reasons, the current PPS could prove to be a profitable entry for long-term investors – especially with LCID trading at an all-time low.
LCID Forecast
With LCID trading at an all-time low, the stock appears to be poised for a major run this week following the PIF’s latest help. Through the company’s deal with Aston Martin, LCID is adding another asset with its Aston Martin stake and a new revenue stream from the $450 million in contracts. Given that this significant deal coincides with the closing of the $1.8 billion private placement with the PIF, LCID stock appears to be set to rebound near pre-offering levels this week.
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