Is Lucid Stock a Buy at $7.25?
There are no guarantees in the investment world. If you bet on the wrong company at the wrong time, be prepared to potentially lose boatloads of money. Lucid Group's (NASDAQ: LCID) early backers learned this lesson well. Shares in the electric vehicle start-up are down by a blistering 99% from the all-time high they reached in early 2021.
The biggest loser is probably the Saudi Arabian government, which controls over 60% of the company's equity through its Public Investment Fund (PIF). But plenty of regular investors have also gotten burned. Let's dig deeper to see if the situation can turn around over the next few years.
The war in Iran might be an underacknowledged bullish factor for the electric vehicle industry. The conflict has virtually choked off the Strait of Hormuz, through which 20% of the world's oil shipment volumes pass. Many top Middle Eastern energy producers have been caught in the crosshairs, sending oil futures up by a whopping 53% year to date.
Source Fool.com
