Short sellers target Lucid stock

Core Viewpoint - Lucid Motors has faced significant volatility in its stock price since its IPO in 2021, struggling to maintain upward momentum despite backing from Saudi Arabia's Public Investment Fund (PIF) [1] Company Performance - Lucid Motors failed to meet its H1 2024 delivery targets by 90%, raising concerns about share dilution due to PIF's investment, which were acknowledged by the CEO [2] - In Q3, the company also did not meet production estimates, contributing to negative sentiment around the stock [2] - Throughout 2024, Lucid's stock price declined by 28%, although it experienced a brief recovery in December with a 41.78% increase from $2.13 to $3.02 following the announcement of production for the Gravity SUV [3] - However, this recovery was short-lived, with the stock price dropping below $3 again by January 13, currently trading at $2.96 [4] Market Sentiment - The stock has attracted significant interest from short sellers, with the short volume ratio rising from 49.42 on January 10 to 59.79 on January 13, indicating strong bearish sentiment [6] - As of January 15, 18.51% of the stock's float has been sold short, and it would take short sellers approximately 3.14 days to cover their positions [6] Macroeconomic Factors - The recent decline in Lucid's stock price and increased short interest cannot be attributed to a single company-specific issue; rather, it is influenced by broader macroeconomic factors such as inflation concerns and reduced expectations for interest rate cuts [9] Future Outlook - Despite the recent challenges, Lucid's fundamental outlook remains stable, with Q4 production and delivery figures exceeding analyst estimates and achieving a production target of 9,000 vehicles for the year [10] - However, Wall Street's average price target for Lucid stock is currently $2.91, reflecting a slight downside and a lack of confidence in the stock's recovery [11]