Lucid Group Inc (NASDAQ:LCID) shares are trading lower Monday morning, slipping in sympathy with a broader market pullback. With no company-specific catalysts hitting the tape for the session, the EV maker appears caught in the downdraft of major indices, as the SPY declines 0.44% and the tech-heavy QQQ drops 0.59% in Monday morning trading.
What To Know: The weakness follows a highly volatile period for Lucid. Sentiment remains fragile following a disappointing third-quarter report where the company posted an adjusted loss of $2.65 per share, wider than the $2.27 consensus, and missed revenue forecasts.
Compounding investor caution is the recent departure of Senior VP of Product Eric Bach and fears of equity dilution stemming from a recently announced $875 million convertible senior note offering due 2031.
Despite a brief rebound last week driven by hopes for Federal Reserve rate cuts, bearish conviction remains incredibly high. Recent data identifies Lucid as the third most-shorted stock on the market, with a staggering 48.99% short interest.
While this heavy short positioning can trigger volatility and squeezes on positive macro news, it currently acts as a heavy anchor during risk-off sessions. Without fresh positive drivers Monday, Lucid shares are retracing toward recent lows amidst the general market pullback.
Benzinga Edge Rankings: Benzinga Edge data underscores this technical weakness, assigning the stock a Momentum score of just 7.42 while indicating negative price trends across short, medium and long-term horizons.
LCID Price Action: Lucid Group shares were down 6.71% at $12.71 at the time of publication on Monday, according to Benzinga Pro data.
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How To Buy LCID Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Lucid Group’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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