Lucid Group (LCID) CEO Peter Rawlinson Just Sold Nearly 8 Million Shares of His Company, but Not for the Reason You Are Probably Thinking Of

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Lucid Group (NASDAQ:LCID), the company behind the Lucid Air electric vehicle, has again become a subject of the fear, uncertainty, and doubt (FUD) narrative that is being propagated by its detractors in light of a new filing by Lucid Group’s CEO, Peter Rawlinson.

Lucid Group’s Saudi Plant Will Have the Capacity To Produce 155,000 Units per Year; The Company’s Total Annual Capacity Will Reach 500,000 EVs by “Mid-decade”

To wit, Rawlinson filed the requisite Form 4 with the SEC yesterday, disclosing the cumulative disposal of 7,981,919 shares of Lucid Group.

Source: https://www.sec.gov/Archives/edgar/data/1811210/000095010322004342/xslF345X03/dp168806_4-rawlinson.xml

However, what many failed to realize is that this liquidation was planned back in July 2021 to fulfill tax liabilities that Rawlinson incurred on the vesting of Restricted Stock Units (RSUs).

Source: https://www.sec.gov/Archives/edgar/data/1811210/000095010322004342/xslF345X03/dp168806_4-rawlinson.xml

In fact, we had explained back in December 2021 that the time-based RSUs of Lucid Group’s CEO are scheduled to vest in sixteen quarterly installments beginning on the 5th of December 2021 (source: Form 10-Q, page 28):

“Time-based RSUs vest based on a performance condition and a service condition. The performance condition was satisfied upon the Closing of the Merger, and the service condition will be met generally over 4.0 years. The company granted 13,834,748 shares of the time-based RSUs to the CEO that will vest in sixteen equal quarterly installments beginning on December 5, 2021, subject to continuous employment.”

Consequently, this share disposal is intended to satisfy Rawlinson’s tax liabilities and should not be interpreted as a case of the proverbial captain abandoning his ship.

Meanwhile, Lucid Group continues to grapple with supply chain bottlenecks and the attendant production-related problems. In fact, the company cited this issue as a major stimulant behind lowering its 2022 delivery projections from 20,000 units to between 12,000 and 14,000 units. On a more cheerful note, the company recently announced while disclosing its earnings for the fourth quarter of 2021 that the total reservations for the Lucid Air electric vehicle now stand at around 25,000 units, equating to a potential sales volume of over $2.4 billion. This means that the entire 2022 production volume of the company is already sold.

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