Lucid Announces 1-for-10 Reverse Stock Split Amid EV Market Challenges

Lucid Group (LCID) is proceeding with a 1-for-10 reverse stock split, a MOVE designed to bolster its share price as the unprofitable EV startup grapples with declining market confidence. The adjustment will reduce outstanding shares from 15 billion to 1.5 billion, with adjusted trading set to begin on September 2.

The company's stock has plummeted nearly 30% this year, driven by production cuts and the looming phaseout of EV tax credits under legislation signed by President Trump. Lucid recently slashed its 2025 production forecast to 18,000-20,000 vehicles, down from an earlier target of 20,000.

In a bid to diversify its strategy, Lucid partnered with Uber Technologies and autonomous software firm Nuro last month to develop robotaxis for Uber's network. The reverse split reflects broader pressures facing EV makers as they navigate tightening regulations and shifting consumer demand.