Lucid’s Stock Braces for 1-for-10 Reverse Split: Critical Insights You Can’t Miss

Lucid Motors just dropped a bombshell—their stock's about to undergo a dramatic 1-for-10 reverse split. Here's what it means for investors.

Why Reverse Splits Matter

Reverse splits shrink the number of outstanding shares while boosting the price per share. It’s a classic move for companies trying to stay listed or appear more valuable—even if the underlying fundamentals haven’t changed.

Lucid’s Gambit

By condensing ten shares into one, Lucid aims to lift its stock price, potentially dodging delisting threats and attracting institutional investors. But let’s be real—it doesn’t fix cash burn or demand issues.

Investor Takeaway

Your stake’s value stays the same—just with fewer shares. But watch out: reverse splits often signal trouble, not triumph. Another finance maneuver that looks better on paper than in your portfolio.

KEY TAKEAWAYS

• Lucid said it will proceed with plans for a 1-for-10 reverse stock split, as the unprofitable EV startup looks to boost its share price.
• The stock has lost nearly a third of its value so far this year amid worries about its outlook and expiring EV tax credits.  
• Earlier this month, the company cut its 2025 production guidance.

Lucid Group (LCID) said it will proceed with plans for a 1-for-10 reverse stock split, as the unprofitable EV startup looks to boost its share price.

In a reverse stock split, a company cuts the number of its outstanding shares and increases the per-share price proportionally. Lucid said the number of authorized shares of common stock will be reduced to 1.5 billion from 15 billion following the reverse split, with the shares set to start trading on an adjusted basis on Sept. 2.

Lucid shares were little changed in recent trading and have lost more than 30% of their value this year amid worries about its outlook and the anticipated phaseout of EV tax credits under the "One Big Beautiful Bill" signed into law by President TRUMP in July.

Earlier this month, Lucid reduced its 2025 production guidance to between 18,000 and 20,000 vehicles for 2025, from 20,000 previously.

The EV company last month launched a partnership with Uber Technologies (UBER) and self-driving software Maker Nuro aimed at developing robotaxis and bringing them to Uber's network.