UBS O'Connor, a hedge fund managed by UBS Asset Management, has significantly increased its short position on Lucid Motors, an electric car manufacturer, taking advantage of the company's declining stock price.

The fund holds 1.8 million put options on Lucid shares, valued at around $4.4 million as of mid-2024. These put options are designed to increase in value as Lucid's stock price decreases. UBS O'Connor has previously profited from its strategy during Lucid's IPO process.

With approximately $14.9 billion in assets under management, the fund has demonstrated its ability to generate returns in both bullish and bearish market conditions. While the short bet against Lucid represents a small portion of the fund's overall portfolio, it highlights its tactical approach in the competitive electric vehicle market.