Lucid Stock Could Soar on Massive Short Squeeze After Earnings

Lucid (LCID) stock is up 62% YTD and could soar even higher on a potential short squeeze. LCID has a short interest of 23% and is one of the most shorted NASDAQ stocks.

In late January 2023, LCID shares squeezed from rumors on a potential buyout from the Saudi PIF. Those rumors were never confirmed by Lucid Motors but showed the epic potential for Lucid stock to fly much higher during the next short squeeze.

Lucid Has a High Short Interest

According to Ortex, there are currently 214 million LCID shares on loan worth $1.7 billion.

Short sellers have been driving down LCID shares ever since the CCIV due to Lucid’s huge net losses over the last few quarters. Just like Tesla, Lucid isn’t making a profit and could possibly face bankruptcy in the future.

However, the Saudi PIF controls over $600 billion in assets and currently owns a 61% stake in LCID. I highly doubt they will allow the company to go bankrupt and even invested an additional $915+ million in the company.

That means LCID could squeeze sometime in 2023 especially if the Saudi PIF buyout rumor is true.

Q4 2022 Earnings Could Send LCID Shares Soaring to the Moon

Lucid exceeded 2022 production estimates and could surprise investors during the upcoming February 22nd, 2023 Q4 ’22 earnings report.

Investors will receive important insights on the Saudi PIF rumors, 2023 production estimates, and forward looking guidance. That could be enough to trigger a massive short squeeze and send the shorts running to cover their shares.

How to Profit from the Lucid Short Squeeze

The easiest way is to simply buy LCID shares and hold them into the q4 2022 earnings call. You could also buy call options with a strike after 2/24.

My lucid stock price prediction for 2023 is $25 with an upper range of $50 if LCID stock squeezes hard.

Check out some of my favorite options trading brokers like Robinhood or Webull if you are looking to trade options.

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