Despite a daunting 30% decline in its stock thus far this year, Lucid Motors’ (NASDAQ:LCID) hasn’t waned from the radars of some major institutional investors and hedge funds. The company’s stock, which has seen an all-time loss of more than 70%, has still managed to pique the interest of these investors, despite a decrease in their net exposure by 2.92% and 11.89% respectively at the close of the first quarter.
But what element is attributing to this dwindling finance trend?
The company’s expansive projections to deliver 90,000 vehicles and attain a revenue of $9.9 billion by 2024 – a figure divulged in Lucid’s 2021 investor presentation. However, the company’s reality is currently lagging behind these ambitious goals, with the recent Q1 earnings report reiterating a 2024 production target of only 9,000 vehicles. Analysts’ predictions for the year’s revenue sits at a mere $733 million, a far cry from Lucid’s projected $9.9 billion.
The preference for hybrid vehicles over pure electric offerings in the recent months, thanks to their cost effectiveness, have forced a downward revision in these forecasts. Lucid has also had to adapt to competition from Tesla (NASDAQ:TSLA), resulting in a subsequent price reduction of its Air models. Up to $29,650 in discounts were announced by Lucid on its inventory vehicles just last month.
The shift in institutional ownership is a key indicator for stock support and liquidity. In Q1, Lucid saw a decline of 62 filers compared to the previous quarter, with 425 13F filers disclosing a stake in LCID stock. This translates to a total of 1.64 billion shares, a drop of 2.92% from the 1.69 billion shares owned in the preceding quarter.
The hedge fund landscape, part of the larger institutional investor group, also reflects a bearish sentiment. The total number of hedge funds with stakes in LCID has slipped from 73 to 64, with total shares owned by these funds decreasing by 11.89% to 34.89 million.
Yet, Lucid still holds the attention of some key shareholders:
The Public Investment Fund (PIF) along with Ayar Third Investment hold a considerable share of 1.65 billion. Ayar showed its confidence in the EV manufacturer by investing $1 billion into the company in Q1. This substantial investment is reported via a Schedule 13D rather than a Form 13F.
The information presented in this article is the personal viewpoint of the writer and does not reflect any direct or indirect holdings in the securities mentioned.
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