Lucid Motors Shortseller Expands Profit to $ 302 Million By Start of September

According to data earlier this month, Newark, California-based electric car maker Lucid Motors has rewarded investors who have made significant profits and bet on their shares during the year. The company aims to target the luxury high-end market segment with its vehicles. One of the few electric vehicle start-ups in the United States aimed at taking advantage of growing market interest.

By the beginning of this month, shortsellers who borrow and sell their shares in the market in the hope of profiting from trading through a fall in stock prices will have a profit of 302 million, according to data shared by research firm S3 Partners. Dollar. These profits were due to Lucido’s share price declining last month as some shareholders’ lock-up period expired last month and their holdings could be sold.

There is a ticker change: Lucid Motors will officially become Lucid Group (LCID) next week

Lucid Motors shortsellers double their profits less than a month after the stock price falls.

From the beginning of August to the end of last week, Lucid Motors’ share price fell $ 23.77, 19.93 16%, and recovery began earlier this month, slowing some of the damage. The stock started at $ 23.77 in August and closed at $ 19.33 on Friday. Looking at the decline that took place earlier this month reveals some of the short-selling profits.

From the beginning of August to the end of the transaction on September 1, Lucid Motors shares lost about a quarter or 25% of their value and some investors’ lockup period ended in September. It has fallen. Lucido, which went public in merge with the special acquisition company (SPAC) Churchill Capital Corporation IV, sold a portion of its shares to institutional investors who were banned from selling before the lockup period expired.

As soon as that happened, the market panicked after similar events for other companies, which led to their institutional camps quickly offloading their holdings.

Lucid Motors (NASDAQ: LCID) prices and short selling data for the period from late June to early September. Image: S3 Partners, LLC

In the aftermath of all this volatility, data from S3 partners reveals that by September 3, Lucid’s shortsellers had expanded their profits to $ 302 million. This was after the stock rose 3%, causing a loss of $ 29 million that day. ..

These rises accelerated rapidly due to the fall in stock prices in August, and data for the third week of the month revealed that shortsellers made $ 135 million on the 16th. These expanded to $ 200 million within four days and increased $ 100 million over the next two weeks.

Waiting is over: Shareholders of Churchill Capital Corp. IV (CCIV) have approved the merger with Lucid Motors today, but a special meeting will resume tomorrow to secure approval for Proposal No. 2.

At the same time, the number of shares sold by short sellers on the market continued to fluctuate significantly. Approximately 1 million short shares were repurchased and sold in the third week of August, with a total increase of approximately 2 million shares during that period. Since then, they have remained at this level, but the impact of a 6% rise in stock prices on them has not yet been determined.

Lucid is moving faster than other electric vehicle manufacturers and plans to offer Lucid Air vehicles to its customers later this year. Air received a lot of support when the car magazine was published in late August. Motor trend We described it as a “great machine” and outlined that a vehicle’s driving range could exceed 500 miles under proper driving conditions. Lucid Motors Shortseller Expands Profit to $ 302 Million By Start of September

Back to top button