![]() ![]() Many analysts believe that aggressive short covering fueled those gains. Interestingly, Lucid’s overall short position did not vary significantly even during the stock’s strong (bear market) rally in July and the first half of August. ![]() In addition, the cost to borrow Lucid shares to put on or to maintain a short position is quite expensive, a reported annual rate of about 11%. Consequently, investors should be mindful that a short squeeze could happen anytime. As of August 15, 2022, approximately 23% of its float was shorted. Lucid is one of the most heavily shorted U.S.-traded stocks. Separately, in late August, Lucid filed an S-3 registration statement with the SEC that would permit it to issue up to US$8 billion in new capital (presumably much of it new equity) over a three-year period. The filing also allows its core investor, a Saudi Arabian investment fund which owns a 60+% stake in Lucid, the flexibility to sell some or all of its 1.0 billion Lucid shares over time. None of the proceeds from any Saudi stock sales would flow to Lucid. (A) Operating cash flow was negative US$745.4 million in the nine months ended September 30, 2021. (in thousands of US $, except for shares outstanding) Note that Lucid produced only 1,405 vehicles in 1H 2022, so production will need to approximately quadruple in the second half to meet even the reduced full-year goal. These departures may be linked to Lucid’s early August announcement that it slashed its full-year 2022 production to 6,000-7,000 Lucid Airs from its previous manufacturing forecast of 12,000-14,000 vehicles. The departures of many high-ranking managers seem unusual for a company which is just beginning to produce electric vehicles on a commercial scale and which appears to have strong growth prospects. Executives should, in theory, be inclined to stay as the equity-linked portion of compensation packages become more valuable as the growth materializes and the underlying share price rises. (NASDAQ: LCID). According to various media reports, six high-level executives, including the VP of global manufacturing and the head of its Arizona operations where the company produces all its vehicles, have recently left the company. All six were involved in Lucid’s manufacturing/logistics processes. The best all-round EV on sale? Perhaps, but then again it does cost $169,000.Negative news continues to swirl around Lucid Group, Inc. Overall Ian is very happy with his Lucid, finding it be a phenomenal car. Hence you get all the performance benefits without having to sacrifice comfort. That said, the ride quality is much better and the Air still performs just as well when it comes to acceleration and handling. Ian prefers the luxury of the Air versus the Model S, however its software isn't quite as good. The Air is capable of 350 kW charging, meaning 300 miles of range can be added in 20 minutes. Lucid's driver assistance setup, DreamDrive, isn't quite on par with Tesla Autopilot yet. The infotainment works well, meanwhile you get frequent OTA updates. ![]() ![]() The Air is also rather practical, with lots of storage space and a massive front trunk. He likes the fact that Lucid still uses a lot of hard buttons as opposed to everything being digital. He's a big fan of the Air's interior and luxury features. Hence he was interested to see how another EV startup would fair. He has an extensive history with Teslas, owning everything from an original Roadster to a Model Y. Ian has owned his Air Dream Edition for around 6 months. ![]()
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