There are numerous Chinese EV companies. Lucid is not one of them.
It's not only questions about its financials that are at the top of prospective Lucid (LCID 0.77%) investors' minds. Many are also curious as to whether Lucid is a Chinese company or not.
There are a variety of electric vehicle (EV) manufacturers based in China, after all, and demand for EVs in the country remains strong, so it's certainly a worthy consideration if Lucid is a Chinese company. Alternately, investors may want to emphasize U.S. stocks in their portfolios.
Big ownership from the Middle East
Lucid's origin story begins in California, where it was founded in 2007 with the original name Atieva. Since it's neither headquartered in China nor predominantly owned by Chinese organizations, it's clear that Lucid is not a Chinese company.
On the other hand, it has significant ties to Saudi Arabia. Its majority shareholder is Saudi Arabia's Public Investment Fund, which owns 1.37 billion shares, representing about 60% of the outstanding shares. Vanguard and Blackrock are also major investors, though their positions are notably smaller -- about 74 million and 48 million shares, respectively.
The EV maker's ties to Saudi Arabia extend even further. Last year, Lucid opened a manufacturing plant there that is expected to eventually have an annual production capacity of 150,000 vehicles.
What's a prospective EV investor to do?
Those investors who prioritize avoiding Chinese exposure in their portfolios and who are also considering buying Lucid stock will be relieved to know that it's not a Chinese company. However, Lucid's ties to Saudi Arabia are substantial, and may disqualify the company as a potential investment for some.
Of course, there are other U.S. EV companies to consider. Rivian (NASDAQ: RIVN), for example, is certainly worth investigating. In addition to being headquartered in California, it operates a production facility in Illinois and is currently developing another manufacturing plant in Georgia. Amazon is itslargest stakeholder, with over 16% of outstanding shares.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
