On May 14, 2024, Lucid Motors (NASDAQ: LCID) stock surged dramatically, trading at $3.18, up by $0.37 (13.21%) today. This spike has generated buzz about a potential short squeeze.

Lucid’s short interest stands at 280,606,688 shares, according to NASDAQ, with a short interest ratio of 25.26 days to cover. The short interest as a percentage of float is an alarming 31.68%, suggesting the could be significant volatility ahead.

The surge in Lucid’s stock price can be linked to a broader revival of meme stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC), with one X user anticipating the move in advance on May 13.

On May 13 and 14, these stocks saw a resurgence fueled by social media activity, particularly on X (formerly Twitter). Influential figures like “Roaring Kitty,” known for his role in the 2021 GameStop frenzy, made a return to social media, sparking renewed interest and coordinated buying efforts among retail investors.

GameStop’s stock jumped by 74% on May 13, closing at $30.45, while AMC surged by 50% on the same day. This wave of enthusiasm spread to other heavily shorted stocks, including Lucid.

The dramatic increase in buying pressure led to a rush among short sellers to cover their positions, driving prices even higher in a classic short squeeze scenario​.

The high short interest ratio indicates a large volume of Lucid shares are sold short, and the recent price movements suggest that short sellers might be scrambling to cover their positions to avoid further losses

Buy stocks now with eToro – trusted and advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

The post Short squeeze alert for Lucid stock appeared first on Finbold.