LCID Stock Alert: Lucid praises its partnership with Saudi Arabia

Lucid Motors (NASDAQ:LCID) is rising today after announcing a positive update. The electric vehicle (EV) manufacturer has had an excellent month of steady growth. But today, LCID stock is up after CEO and CTO Peter Rawlinson announced BloombergTV about Lucid’s partnership with Saudi Arabia Public Investment Fund (PIF) is running extremely well.

Specifically, he called the PIF the “perfect long-term partner” for his company in its current phase of scaling production. This is exactly the kind of development investors should expect from Lucid, as it suggests the company’s gradual recovery will continue.

What is happening with LCID stock?

Despite some volatility this morning, LCID stock has been trending up today. At the time of writing, it closed the day up 8%. Although it’s still trading below the penny stock line, Lucid is showing notable progress with gains of more than 30% for the month. That’s partly due to the recovering EV market. And after Rawlinson’s comments, it’s clear the company is on the right track. I’m looking for Alpha:

“Rawlinson said Lucid’s (LCID) advanced technology gives it a sales advantage. In terms of capital raising, Rawlinson stressed that the company needs to raise more money when the market is favorable. He noted that the Saudi Arabia Public Investment Fund is the perfect long-term partner for Lucid (LCID), as there appears to be an expansion underway. Rawlinson also noted that the deal with Aston Martin is still going well.”

The fact that Lucid’s partnership with Saudi Arabia is going well should be welcome news for investors. Given the company’s difficulties over the past year, it is understandable that investors are concerned about its long-term growth prospects. Other EV penny stocks like Fisherman (OTCQB:FSRNQ) have not performed too well and still seem to be on the fast track. But Lucid has strong support and is clearly focused on using it to continue to scale production exactly as it should.

Why it is important

This is not the first positive update Lucid has reported recently. Lucid is among the EV manufacturers that reported better-than-expected deliveries in the second quarter, a clear sign that the market is recovering. “The company’s deliveries increased a solid 70.51% to 2,394 vehicles,” reports InvestorPlace‘s Eddie Pan. “That was 26.73% above the analyst estimate of 1,889 vehicles.”

Now, the company has shown that it is well positioned to continue its growth as its market recovers. If Lucid secures more partnerships, as Rawlinson suggested, LCID stock will gain even more momentum, which could push it out of penny stock territory.

At the time of publication, Samuel O’Brient had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.