Lucid Motors Short Sellers Extend Gains To $302 Million By September Start

According to information from the showtime of this month, Newark, California-based electric vehicle manufacturer Lucid Motors has rewarded investors betting against its shares with hefty gains through the class of this year. The company aims to target the luxurious loftier end market segment with its vehicles, and it is. one of the few electrical vehicle startups in the United States which aim to take advantage of the growing involvement in the market.

Data shared by enquiry firm S3 Partners reveals that by the showtime of this calendar month, brusque sellers, who infringe and then sell a company's shares on the market in society to hope to turn a profit from their transactions through a share price decline, saw their gains extend to $302 million. These gains come as Lucid's share toll took a downward trend over the by month, aided by the lockup menses expiring for some of its shareholders last month, allowing them to sell their holdings.

Lucid Motors Short Sellers Double Their Gains In Less Than A Month Afterward Share Price Dip

From the start of August to the end of last week, Lucid Motor'southward share price has dropped past $23.77 xix.93 16%, with a recovery that started with the get-go of this month, blunting out some of the damage. The shares opened at $23.77 in August and airtight at $19.33 on Friday, and when we look at the drib that took identify on the first of this month, some of the gains made past the brusque sellers become clearer.

From the start of August to the end of trading on September 1st, Lucid Motors' shares lost roughly a quarter or 25% of their value, with the dip in September coming equally the lockup period for some of the company's investors expired. Lucid, which went public by merging with a special purpose acquisition company (SPAC) Churchill Capital Corp IV, had sold some of its shares to institutional investors who were prohibited from selling them before the lockup period expired.

As before long as it did, the market panicked subsequently similar events for other companies, which led to their institutional camps immediately offloading their holdings.

Price and short interest data for Lucid Motors (NASDAQ: LCID) for the period starting from late June and ending in early September. Prototype: S3 Partners, LLC

In the aftermath of all this volatility, data from S3 partners reveals that by September tertiary, Lucid's short sellers had extended their gains to $302 million, which came after the shares moved upwardly by 3% and caused them a loss of $29 million on that day.

The August share toll drib caused these gains to advance rapidly, with data from the month's third week revealing that on the 16th, the short sellers had profited by $135 1000000. These extended to $200 meg within 4 days and then grew past $100 million over the course of the adjacent two weeks.

At the same time, the number of shares that the short sellers sold on the market place continued to fluctuate wildly. Roughly a meg shorted shares were repurchased and sold during August'due south third week, with the full amount increasing by roughly two meg during that flow. Since then, they have remained at this level, but the impact of the 6% share toll increase on them remains to be determined.

Moving speedily when compared to other electric vehicle manufacturers, Lucid has plans to deliver its Lucid Air vehicle to customers afterwards this year. In belatedly Baronial, the Air received a big boost when automobile mag MotorTrend described it as a "fantastic machine" and outlined that the vehicle'due south driving range could extend beyond 500 miles under the right driving atmospheric condition.