It hasn’t exactly been a standout year for Lucid (NASDAQ:LCID), as shares of the electric vehicle (EV) company have shed more than 30% year-to-date (YTD) compared with the S&P 500’s return of about 17%. Lucid’s loss is attributed to price competition and a slow production ramp-up amid low customer demand for its luxury Air models.
During its third-quarter earnings, Lucid lowered its 2023 production guidance to between 8,000 and 8,500 vehicles from more than 10,000 vehicles. Q3 revenue tallied in at $137.8 million from the delivery of 1,457 vehicles.
Still, Lucid will soon expand into another automotive segment. The company’s upcoming vehicle, the Gravity SUV, will make its debut today at the LA Auto Show. Not much has been revealed about the vehicle, although CarExpert reports that it will be available in both two- and three-row seat configurations with a range that beats out every competitor on the market.
While it may not seem like it this year, Lucid has a competitive advantage over its rivals due to its support from Saudi Arabia’s Public Investment Fund (PIF) and its affiliate, Ayar Third Investment. Earlier this year, Ayar agreed to purchase shares worth $1.8 billion, bringing its total investment into Lucid to $5.4 billion. PIF and Ayar are majority shareholders of LCID stock with a 60.5% stake. Of course, the contribution of this massive investment fund doesn’t guarantee Lucid’s success, but it certainly helps.
5 Investors Betting Big on LCID Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 466 13F filers disclosed a stake in LCID stock, a decline of six filers from the prior quarter. These filers in aggregate own 1.678 billion shares, up slightly from 1.667 billion shares during the second quarter. These data points aren’t exactly compelling for Lucid, as shareholders may have expected greater institutional demand due to LCID’s decline this year.
With that in mind, let’s take a look at Lucid’s top shareholders as of Q3:
- PIF/ Ayar Third Investment: 1.37 billion shares. Ayar acquired 265.69 million shares through a private placement during Q3.
- Vanguard: 74.07 million shares. Vanguard acquired 913,415 shares during Q3.
- BlackRock (NYSE:BLK): 48.36 million shares. BlackRock acquired 3.03 million shares during Q3.
- State Street (NYSE:STT): 18.16 million shares. State Street acquired 2.11 million shares during Q3.
- Geode Capital Management: 14.04 million shares. Geode acquired 1.51 million shares during Q3.
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.
