Lucid Group (NASDAQ: LCID) stock jumped in early Wednesday trade, following the upward momentum of Rivian shares (NASDAQ: RIVN). Rivian stock saw a meteoric rise following the announcement of a major investment from Volkswagen, the German automaker.
Volkswagen revealed plans to invest $5 billion in Rivian, beginning with an initial $1 billion through an unsecured convertible note, which will convert into Rivian common stock. The German automaker will invest an additional $4 billion over time as part of the transaction.
The two companies have worked extensively in recent months to validate the compatibility of their technology, laying the groundwork for a successful collaboration. The automakers expect to complete the joint venture formation in the fourth quarter of 2024.
In parallel, Lucid Group announced the appointment of Nick Twork as Head of Global Communications. Twork will oversee Lucid’s global communications team, including worldwide product, corporate, financial, and internal communications, media relations, and social media. He will report directly to Lucid CEO Peter Rawlinson, effective immediately.
Rawlinson said the following about the new appointment,
“Nick has a rare blend of deep industry insight, emerging technology leadership, and a passion for our mission to decarbonize the transportation sector. I’m confident Nick can help build awareness of our brand while supporting Lucid’s ambitious growth plans.”
Lucid (NASDAQ: LCID) Stock Reaction
As of 09:48 a.m. (Eastern Time) Wednesday, LCID stock traded at $2.6750, marking a 7% increase compared to the previous trading session.
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