Lucid Buyout Rumour is ‘Fake News’ Says Fuzzy Panda Research

Last Friday, Lucid Group (NASDAQ: LCID) shares surged on a report that Saudi Arabia's Public Investment Fund is readying to buy out the remainder of the electric vehicle maker.

The report emerged from Ben Harrington's Betaville blog, which said that according to contacts, the Public Investment Fund is working with banks to acquire the remainder of Lucid that it does not already own. However, the post has been taken down.

Shares of Lucid Group closed Friday’s session up 43%, although they closed Monday’s session down over 8%.

The move lower came after a report from Fuzzy Panda Research, which stated, “Sell Lucid – We Believe Buyout Rumor is FAKE NEWS – Came Right After Lock-up Expiration.”

Fuzzy Panda said it is short Lucid Group shares because the source of the Saudi Public Investment Fund buyout rumor is “Fake News.”

“A Betaville’s ‘uncooked alert’ was widely cited as the source of LCID rumor that sent Lucid’s shares as high as $17.80 (+99%) and the stock closed at $12.87 (+43%) on the day,” said Fuzzy Panda. “Yet, Betaville’s confidence in their own rumor must have been so low that they quickly removed the Lucid rumor from their website.”

“We think the >40% market move in LCID’s stock price presents an unprecedented opportunity to short the stock especially given the suspicious timing that coincided with a lock-up expiration,” Fuzzy panda argues.

The research firm also attacked Betaville’s track record of “uncooked alerts.”

Furthermore, Fuzzy Panda also said there are other reasons to be short Lucid, including the lack of demand and the “bad economics further deteriorating.”

They add that the “LCID-PIF rumor presents a great opportunity to short an EV company whose customers don’t want their product.”