Lucid Group Stock Tanks: What’s Draining the EV Darling This Week?

Another brutal week for Lucid investors as shares skid—here's why the luxury EV play is hitting speed bumps.

Short-circuiting expectations

Wall Street's patience wears thin as production targets get fuzzy and cash burn accelerates. That $7,500 tax credit can't fix everything.

Charging station reality check

Infrastructure gaps and charging anxiety aren't helping—Tesla's Supercharger network still laps the competition. First-mover advantage strikes again.

The cynical take

Another 'growth story' learning the hard way that making cars is harder than making PowerPoints. At least the Saudis still believe (for now).

Lucid wants to boost its stock price

Though it still needs to be approved by shareholders, Lucid announced earlier this week that it intends to initiate a 10-for-1 reverse stock split. While this won't directly affect the underlying value of investors' positions, it carries negative connotations.

A reverse stock split is most often used to keep a share price above the $1 minimum that the New York Stock Exchange and Nasdaq require. Lucid says that there is no danger of the stock falling under $1 and that this is in an attempt to make the stock more attractive to institutions, which sometimes have minimum prices for stocks they will buy.

Tariffs and weak job data spook markets

President TRUMP set new rates for his "reciprocal" tariffs on dozens of countries with a fresh executive order. This comes as the latest job data shows a slowdown in hiring, indicating the economic picture might be less rosy than hoped. The U.S. added just 73,000 jobs in July, well below the expected 100,000.

Image source: Getty Images.

Lucid has a long way to go

Lucid is at a critical juncture. It must grow sales and reduce costs significantly to show it can reach profitability, which it is still far from doing. I think too many hurdles lie in its way, and I WOULD avoid Lucid stock.