Key Points

• A Saudi billionaire took a 5% stake in Lucid.

• Investors jumped in after that vote of confidence.

• Lucid's Aug. 4 financial update is much more important.

• 10 stocks we like better than Lucid Group ›

Lucid Group (NASDAQ: LCID) stock soared this week ahead of its earnings report on Aug. 4. That wasn't the reason for the rally, though. A billionaire investor bought a stake in the company, helping shares jump 17% from last Friday's close, according to data provided by S&P Global Market Intelligence.

Lucid's largest shareholder is Saudi Arabia's sovereign wealth Public Investment Fund (PIF). The PIF has participated in multiple investment rounds, and the electric vehicle (EV) maker has a manufacturing facility in the Kingdom.

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That plant currently handles vehicle assembly using parts imported from the U.S., but Lucid also plans to produce vehicles there in full. This week, a well-known Saudi investor also took a stake in the EV maker.

Saudi billionaire Prince Alwaleed bin Talal Al Saud revealed a passive 5% ownership in Lucid Group in a Securities and Exchange Commission (SEC) filing on July 28, 2026. He acquired 19.5 million Class A common shares during a market downturn when Lucid's market value dropped below $2 billion.

The Saudi prince is known for his large investments in big, global tech companies. That explains why investors jumped into Lucid after learning of his stake. But blindly following another investor, no matter how successful, isn't necessarily a smart strategy.

Lucid's upcoming report on Tuesday, Aug. 4, after the market closes, is what investors should focus on. The company is counting on its new Gravity SUV and self-driving technology to boost sales. Any related news is what should guide investors' next move with Lucid stock.

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Howard Smith has positions in Lucid Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.