Giant Lucid stock short squeeze alert

Lucid stock (NASDAQ: LCID) is experiencing increased short-selling activity, which could culminate in a short squeeze.

To be more precise, 43.73% of LCID shares traded on April 30 were sold short — representing an uptick from 39.23% at the start of the week.

While the increase in short positions is not linear, and still appreciably lower than in mid and early April, there are other metrics to consider when looking at the big picture. At present, the electric vehicle (EV) stock’s short interest is equivalent to 28.86% of its float, equating to significant bearish sentiment.

Moreover, the current short interest ratio of Lucid stock stands at 4.76 days — indicating that it would take a fairly long time to close out the short positions currently opened.

Lucid stock could see a surge following earnings call

One possible cause behind the increased short-selling activity is the company’s next earnings call, due May 6. 

At press time on May 1, Lucid stock was changing hands at a price of $2.51, having made a 4.58% move to the upside following a low of $2.40 a day prior.

While Q1 production and delivery figures showed promising year-over-year (YoY) growth, this failed to materialize into a significant move to the upside. Lucid is mostly tariff-proof, as a majority of its production processes are located in the United States — but duties on some of the components it does import could have an impact on the bottom line.

With that being said, all of the dips in Lucid stock price in recent times were accompanied by strong volume and quick rebounds — a clear demonstration that strong demand exists when LCID shares are trading at a discount.

Ultimately, with macroeconomic conditions being what they currently are, a significant move to the upside — and therefore, a short squeeze, remain unlikely prospects, despite a concerning setup in terms of days to cover and high short interest.

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