Lucid Group Inc. (LCID) shares continued their slide Friday morning, extending what has been a punishing stretch for the luxury electric vehicle manufacturer. Without any fresh company-specific news to point to, the stock appears caught in a broader technical downdraft that's showing no signs of letting up.

A Perfect Storm of Headwinds

The recent weakness isn't happening in a vacuum. Lucid has been navigating some genuinely rough waters lately, and investor confidence remains shaky after a disappointing third-quarter earnings report last month. The company posted an adjusted loss of $2.65 per share, notably wider than the $2.27 consensus estimate, while also missing revenue forecasts.

Then came the leadership shuffle. Senior VP of Product Eric Bach recently departed, adding another layer of uncertainty for investors already questioning the company's direction. And just when things seemed like they couldn't get more complicated, Lucid announced an $875 million convertible senior note offering due 2031, immediately triggering renewed fears about equity dilution.

Short Sellers Are Circling

Here's where things get interesting from a market mechanics perspective. Lucid currently ranks among the market's most heavily shorted stocks, with short interest hovering near 50% of its freely traded float. That's an enormous bearish bet.

This heavy short positioning creates a strange dynamic. When Treasury yields retreat or hopes rise for Federal Reserve rate cuts, the stock can experience brief rallies as shorts scramble to cover. But during risk-off trading sessions, that same bearish conviction acts like a concrete anchor dragging shares lower.

The Technical Picture Looks Grim

The numbers paint a pretty stark picture. Shares are currently trading approximately 25.6% below the 50-day moving average and about 38.9% below the 200-day moving average. These significant gaps indicate a firmly entrenched bearish trend, suggesting Lucid has struggled mightily to maintain any upward momentum over both medium and long-term timeframes.

Market data highlights the severity of this downtrend with a "weak" Momentum score of just 10.52 and negative price trend indicators across short, medium, and long-term horizons. Without fresh positive catalysts to change the narrative, the stock appears stuck in neutral at best.

What's Next for Lucid?

With shares down roughly 55% in 2025, Lucid Group faces an uphill battle to regain momentum. The luxury EV maker needs something positive to break this cycle, whether that's stronger-than-expected delivery numbers, improved financial guidance, or some other catalyst to shift investor sentiment.

For now, though, the stock remains under pressure as technical factors, heavy short interest, and lingering concerns about the company's financial health continue weighing on shares. Lucid Group shares were down 3.28% at $13.69 at the time of publication Friday.