Lucid (NASDAQ:LCID) stock has shed over 30% so far this year, bringing its all-time loss to more than 70%. Both institutional investors and hedge funds are taking notice, decreasing their net exposure by 2.92% and 11.89%, respectively, as of the end of the first quarter.
How much of that can be attributed to missed expectations?
As pointed out by The Motley Fool, Lucid guided for the delivery of 90,000 vehicles and revenue of $9.9 billion for 2024 in its 2021 investor presentation. Those estimates are a long way from reality, as Lucid recently reiterated its 2024 production guidance for 9,000 vehicles in its Q1 earnings. For the year, analysts are expecting revenue of $733 million — or, in other words, no where near $9.9 billion.
These lowered estimates come as customers have favored hybrids over electric vehicles (EVs) in recent months, likely due to a lower price tag. Lucid has also had to deal with Tesla (NASDAQ:TSLA) price cuts, which resulted in the company lowering the price of its Air models. Last month, Lucid announced discounts of up to $29,650 on its inventory vehicles.
5 Investors Betting Big on LCID Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q1, 425 13F filers disclosed a stake in LCID stock, a significant decline of 62 filers compared to the prior quarter. These filers own a total of 1.64 billion shares, down by 2.92% compared to 1.69 billion shares.
Hedge funds, a subset of institutional investors, appeared bearish. A total of 64 hedge funds reported a stake in LCID, down from 73. On top of that, total shares owned by hedge funds fell by 11.89% to 34.89 million.
With that in mind, let’s take a look at Lucid’s top shareholders:
- Public Investment Fund (PIF)/ Ayar Third Investment: 1.65 billion shares. Ayar agreed to invest $1 billion into the company during Q1. The investment firm’s position is disclosed via a Schedule 13D instead of a Form 13F.
- Vanguard: 83.74 million shares. Vanguard acquired 489,187 shares during Q1.
- BlackRock (NYSE:BLK): 40.83 million shares. BlackRock sold 8.51 million shares during Q1.
- Morgan Stanley (NYSE:MS): 17.42 million shares. Morgan Stanley added 8.68 million shares during Q1.
- State Street (NYSE:STT): 15.19 million shares. State Street sold 4.63 million shares during Q1.
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.
