Lucid Group (LCID), a manufacturer of electric vehicles (EV), may have the production vehicle with the greatest range in the world, but its stock performance has been deteriorating recently.
As of the 23rd of September, the price of Lucid’s shares has decreased by more than 62% since the beginning of the year. The output quota for August was cut in half by the corporation. Despite this, there are still a significant number of institutional investors involved.
Who owns the most shares of Lucid Motors? We take a look at the largest Lucid Group shareholders and investigate the motivations for their stock holdings in the firm.
About Lucid Motors
Lucid Motors (LCID) is an electric vehicle (EV) company that is situated in the state of California.
On July 23, 2021, the merger between Lucid and the special purpose acquisition company (SPAC) Churchill Capital Corp. IV (CCIV) was completed.
After the completion of the transaction, CCIV stock was removed from the trading floor of the New York Stock Exchange (NYSE), where it had been active since July 2020.
The merged business now goes by the name Lucid Group and is active in a variety of industries, including energy storage and original equipment manufacturing.
On July 26, 2021, Lucid Group became a publicly listed company, and it began trading on the Nasdaq Global Select Market. The ticker symbols for its Class A common stock and public warrants were changed to read ‘LCID’ and ‘LCIDW’, respectively.
Lucid started as Atieva in 2007. Sam Weng, who had previously worked as a co-founder and vice president (VP) of sales and marketing at Astoria Networks, Bernard Tse, who had previously worked as a vice president at Tesla (TSLA), and Sheaupyng Lin, an inventor, established the firm.
Originally, Atieva’s primary emphasis was on the research and development of electric batteries and powertrains for use by other automakers. After undergoing a name change in 2016, the company is now known as Lucid Motors and is working on producing high-end, high-performance electric vehicles.
The Lucid Air is an electric luxury automobile, and it is the primary product that the firm sells. As of August 2022, the business has received 37,000 pre-orders for the Lucid Air and has delivered 679 units to various consumers.
In 2018, the Public Investment Fund (PIF) of Saudi Arabia made an investment in Lucid Motors that was more than one billion dollars.
The money will be used to assist support the development, testing, and production of Lucid Air.
It will also be used to help fund the building of a manufacturing facility in Arizona and the introduction of the company’s retail strategy in North America. In December 2019, the business started building on the plant that will be located in Arizona. Learn more
Lucid Stock Performance and Price Drivers
The share price of LCID Group shares opened for trading on the market at $25.24, and it finished the first day of trading at $26.83, representing a gain of 10.64% over the beginning price.
After reporting that reservations of Lucid Air had increased by 30% to 17,000 by 15 November, up from roughly 13,000 in September 2021, Lucid Group’s share price reached its all-time high of $57.75 on November 17, 2021. This drove Lucid Group’s stock to its all-time high.
Despite this, things have been trending in a negative direction ever since that time. The share price of the firm took a hit as a result of a wider market sell-off of technology equities as well as difficulties in ramping up manufacturing.
Since 2020, automakers, notable manufacturers of electric vehicles (EV), have been impacted by severe shortages of semiconductors, which have resulted in production delays and a decline in sales.
Chips are essential to the production of automobiles because they enable the incorporation of functions like automated braking, power steering, and the activation of airbags.
Lucid Motors said in the second quarter of 2022 that it will cut its production projection for 2022 by almost one-half, from an earlier goal of 12,000 to 14,000 automobiles to 6,000 to 7,000 vehicles.
The stock price of Lucid Group has decreased by more than 62% since the beginning of the year.
The price of the stock has dropped by around 41 percentage points ever since it was first traded in 2021. The price of a single share of Lucid’s stock was $14.31 on September 22.
Who Owns a Share of Lucid Motors?
Before we get into the question of who owns Lucid stock, let’s first determine how many shareholders there are in Lucid Group.
As of the 23rd of September, the data provided by Nasdaq indicated that Lucid had a total of 1.672 billion outstanding shares, which were held by a variety of investors.
According to the statistics provided by WallStreetZen as of September 23rd, around 53% of Lucid’s stock owners were institutional investors, while 47% were considered to be insider investors. For instance, institutional shareholders owned 14.22% of Tesla (TSLA), while they controlled 49.43% of Ford (F).
Institutional investors that hold Lucid shares include sovereign wealth funds, pension funds, banks, money managers, and insurance companies. Other forms of institutional investors include money managers and insurance companies.
Who Owns the Most Shares of Lucid Motors?
A corporation that makes investments on behalf of other people is known as an institutional investor.
The goals of institutional investors’ customers are taken into consideration while making investment decisions. Individuals that invest their own money are considered to be retail investors.
Institutional investors often have greater financial muscle than retail investors, which enables them to trade large quantities of shares and significantly affects the movement of stock prices.
Retail investors tend to have less financial strength. According to Nasdaq, the information on institutional holdings may be used to make predictions on the volatility and value of a firm.
As of the 23rd of September, according to information provided by Nasdaq and WallStreetZen, the Public Investment Fund, the Vanguard Group, and M.Klein & Company are the top three LCID holdings among institutional investors.
Public Investment Fund (PIF)
According to information from a filing with the Securities and Exchange Commission (SEC) in July, the Public Investment Fund (PIF), which is the sovereign wealth fund of the Kingdom of Saudi Arabia, owns the most shares of Lucid motors: 60.7%, which is valued at $15.80 billion.
PIF serves as the investment arm of the Kingdom and maintains a diverse portfolio of local, regional, and global assets that span a variety of asset classes and geographic locations.
According to research conducted by the SWF Institute, the PIF is the sixth biggest sovereign wealth fund in the world. Its assets under management (AUM) are $6.120 trillion.
According to the statistics provided by Nasdaq, as of June 2022, consumer cyclical represent the largest part (almost 53% of the total) of PIF investments. The second place goes to technology (30.33%).
In addition to Lucid, the Public Investment Fund (PIF) has financial stakes in several other significant corporations based in the United States.
These include Starbucks (SBUX), Paypal Holdings (PYPL), Microsoft (MSFT), and Costco Wholesale Corporation (CSTO).
Construction on Lucid’s new facility in Saudi Arabia, which will be known as the AMP-2 and can manufacture 155,000 electric vehicles, has begun.
It was a provision of an agreement between the corporation and the government of the Kingdom that had been struck in February of 2022.
As part of the agreement, Saudi Arabia will purchase 100,000 automobiles manufactured by Lucid over ten years.
M.Klein & Company
According to the information included in the SEC’s filing, the global strategic consultancy and investment firm M. Klein & Company was the second largest Lucid stock owner among institutional shareholders. The company owned 51.75 million shares, which represented a 3% ownership in the company.
Michael Klein, an investment banker with three decades of management experience at Citigroup, launched the firm in 2012. Klein is the company’s only shareholder.
As of the 23rd of September, according to the data provided by WallStreetZen and Nasdaq, the Pennsylvania-based financial advisory firm Vanguard Group was the third largest Lucid shareholder among institutions, holding around 2.46% of the whole stock with a value of $642.12 million.
As of the 30th of April in the year 2022, Advratings places Vanguard in second place among the world’s major asset managers, with a total of $7.5 trillion in AUM.
Vanguard is a financial services company that was established in 1975. It provides individual individuals, institutions, and financial professionals with a wide variety of investments, advice, retirement services, and insights.
The work that the business has done to produce index-tracking mutual funds and exchange-traded funds (ETFs) that are readily available to regular investors has earned it a great deal of notoriety.
The performance of such financial instruments is meant to mirror that of a benchmark index, such as the S&P 500 (US500) or the Nasdaq 100. (US Tech 100).
Who is the biggest individual shareholder of Lucid motors
According to the data from SEC filings, the Lucid insiders who possess the most shares of LCID are the company’s CEO and Chief Technology Officer (CTO), Peter Dore Rawlinson; Director Turqi Alnowaiser; and Senior Vice President of Product and Chief Engineer, Eric Bach.
Peter Dore Rawlinson
Since April 2019, Peter Rawlinson has been serving as both the Chief Executive Officer and Chief Technology Officer of the firm. Rawlinson held the positions of Vice President of Vehicle Engineering and Chief Engineering at Tesla before he started working at Lucid (TSLA).
According to the filings with the SEC from September, Rawlinson has a holding of 1.26%, which amounts to 21.24 million shares. This makes him Lucid’s largest individual insider investor.
Since 2019, Turqi Alnowaiser has served as a member of the board of directors for Lucid. He has held the position of deputy governor of the PIF and head of the foreign investments section since June 2021.
According to the reports with the SEC as of the 6th of September 2022, Alnowaiser controlled around 2 million shares in Lucid, which equated to a 0.12% ownership in the company.
Before beginning his work with Lucid, Eric Bach served as the chief engineer of Tesla from 2012 to 2015.
According to data provided by the SEC as of September 6th, Bach had 1.75 million shares of Lucid, which translated to a 0.10% ownership in the company.