LCID - The 5 Biggest Buyers of Lucid Motors (LCID) Stock

2024-05-21 12:27:09 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Electric vehicle (EV) companies aren’t exactly having a good year, and Lucid (NASDAQ: LCID ) is no exception. LCID stock has shed over 30% of its value year-to-date as customers favor lower-priced hybrid models amid a price war among EV competitors.

During the first quarter, Lucid produced 1,728 vehicles and delivered 1,967 of them. Additionally, Lucid reiterated its 2024 production guidance of 9,000 vehicles. However, shareholders were expecting more.

Last year, Lucid produced 8,428 vehicles while delivering 6,001 of them. Based on Q1 production and deliveries, current production must ramp up to exceed 2023 production, while deliveries are on track to exceed 2023 deliveries by a wide margin.

If things don’t turn out as well, Lucid still has the support of Saudi Arabia’s Public Investment Fund (PIF) and its subsidiary, Ayar Third Investment. The entities are the largest shareholder of LCID stock with ownership of 1.65 billion shares.

In March, the EV company announced that Ayar had agreed to invest an additional $1 billion in exchange for newly issued convertible preferred stock after previously investing $5.4 billion . Lucid noted that the proceeds would be used for general corporate purposes. In fact, Lucid’s current market cap of about $6.5 billion is roughly equivalent to PIF’s total investments.

The 5 Biggest Buyers of LCID Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, institutional investors were net sellers of LCID during Q1. Their total ownership fell by 2.92% to 1.64 billion shares. Hedge funds were also net sellers, with exposure falling by 11.89% to 34.89 million shares.

Let’s flip to the other side of the trade and take a look at the top buyers of LCID during Q1:

1. PIF/Ayar Third Investment added 278.14 million shares, bringing its stake to 1.65 billion shares. PIF’s/Ayar’s stake is reported via a 13D filing, so the numbers are not included in overall 13F statistics.
2. Morgan Stanley (NYSE: MS ) added 8.68 million shares, bringing its stake to 17.42 million shares.
3. Coatue Management added 2.95 million shares after previously owning zero shares.
4. Citigroup (NYSE: C ) added 2.47 million shares, bringing its stake to 3.11 million shares.
5. The National Bank of Canada added 822,901 shares, bringing its stake to 841,339 shares.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

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