Lucid Group, Inc. (NASDAQ: LCID) has become one of the most actively traded US stocks, attracting significant hedge fund interest despite ongoing financial challenges. The electric vehicle (EV) manufacturer is making headlines following a major leadership transition and its aggressive expansion plans, solidifying its status as a stock to watch in 2025.
Lucid Group Sees Strong Hedge Fund Backing
According to recent Q4 2024 hedge fund filings, 24 hedge funds held positions in Lucid Group, signaling growing institutional interest. This places LCID among the most actively traded US stocks, drawing attention from large investment firms seeking exposure to the EV sector’s growth potential.
Hedge funds continue to target high-volume stocks like Lucid due to their liquidity and volatility, which makes them ideal for short-term trading strategies such as momentum investing and algorithmic trading.
Lucid Group’s Leadership Shakeup and Expansion Plans
On February 25, 2025, Lucid announced a major leadership transition. Peter Rawlinson, the company’s CEO and CTO, stepped down and transitioned to Strategic Technical Advisor to the Chairman. In his place, Marc Winterhoff, the current Chief Operating Officer, was named Interim CEO. Lucid’s Board of Directors has initiated a search for a permanent CEO, marking a significant shift in the company’s executive team.
The leadership change comes as Lucid ramps up its expansion efforts, including the launch of its Gravity SUV and the development of new midsize EV models. The company is also investing heavily in its low-cost Atlas drive unit, aimed at making its vehicles more accessible and cost-competitive.
Financial Performance and Future Outlook
Lucid reported full-year 2024 revenue of $807.8 million, representing a 71% year-over-year growth in deliveries, with 10,241 vehicles delivered. Despite the sales surge, the company posted a GAAP net loss of $1.25 per share and a non-GAAP net loss of $1.04 per share, reflecting ongoing financial pressures.
However, Lucid maintains a strong liquidity position with $6.13 billion in cash, providing a solid runway for expansion. The company met its 9,000-unit production guidance for 2024 and expects to more than double production in 2025 to 20,000 vehicles, signaling ambitious growth plans despite current losses.
Lucid’s Market Activity Reflects Broader Hedge Fund Trends
The surge in hedge fund interest in Lucid reflects a broader trend of institutional investors favoring high-volume, growth-oriented stocks in the EV sector. With volatile market conditions and growing uncertainty around trade policies, hedge funds are increasingly betting on active, liquid stocks that offer potential for short-term gains.
