Lucid stock (NASDAQ: LCID) has been on a bumpy road ever since its 2021 initial public offering (IPO).
President Trump’s newest salvo of tariffs, unveiled on April 2, caused a sharp correction in the price of LCID shares. To be precise, the price of Lucid stock dropped from $2.40 at the time of the announcement to $2.27 at press time on April 4.
At present, LCID stock is down 25% on a year-to-date (YTD) basis.

In addition, the luxury carmaker’s shares could continue on their downward trajectory, as short-sellers are increasingly targeting the stock.
Lucid stock short volume ratio skyrockets to two-week high
On April 3, the short volume ratio of Lucid stock reached a two-week high of 70.84, up from 63.66 a day prior, per data retrieved by Finbold from Fintel. LCID shares have been heavily shorted for the 30 days — with the ratio rarely dipping below 50.

Some 23.45% of the stock’s float has been sold short, indicating a strong degree of bearish sentiment.
While the automaker’s stock will likely continue to see short-term volatility, its Q1 production and delivery figures, released on April 2, show rather strong year-over-year (YoY) growth in both metrics.
However, the bearish factors at play, which are causing the increase in short-selling activity, appear to be more dominant. The sudden departure of the company’s chief executive officer (CEO), Peter Rawlinson, was quite unexpected, and a successor hasn’t been designated, leading to concerns regarding leadership and direction.
On top of that, the company plans to offer $1 billion in convertible senior notes due 2030 in order to raise capital. What’s more, the purpose of this move is to refinance existing debt. Beyond increasing future obligations, it could lead to future dilution if those notes are converted into Lucid stock.
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