Why Lucid Group Stock Crashed Today — Then Miraculously Recovered

Lucid shares took investors on a white-knuckle rollercoaster ride — plunging deep into the red before staging a dramatic comeback that left Wall Street scratching its collective head.

The Electric Shock

Early morning trading hammered Lucid with a selloff that vaporized millions in market cap within hours. No fundamental news triggered the bloodbath — just another day in the casino-like volatility of growth stocks.

The Reversal No One Saw Coming

By afternoon, buyers swarmed back in like crypto degens chasing a memecoin pump. The bounce defied conventional logic, proving once again that market sentiment shifts faster than a Bitcoin flash crash.

When Fundamentals Take a Backseat

Traders placed bets on pure momentum — because who needs boring old financial metrics when you've got chart patterns and hopium? Another reminder that sometimes stocks move for no reason other than they can.

Image source: Getty Images.

Lucid's reverse stock split

But let's focus on the reverse stock split. What does this mean if you own Lucid stock?

As the name implies, a reverse split is the opposite of an ordinary stock split. Instead of splitting every share you own into multiple shares, each costing a fraction of the original price, this reverse split will glue together every 10 shares of Lucid you own into one single share -- ideally at a price 10 times what each original share cost.

The goal: To lift Lucid's stock price -- which at $2 a share is dangerously close to the $1 price at which the Nasdaq might delist the stock -- up closer to $20 a share, where it should be SAFE from delisting.

Is Lucid stock a buy?

Note that the reverse split doesn't change the facts surrounding the company at all. It doesn't change the fact that Lucid is losing $2.3 billion a year, that it's burning more than $3 billion in cash annually, or that at current burn rates, Lucid could run out of money in less than one year.

It also doesn't make Lucid stock any more of a buy.