Why did LCID plummet?

The deep research logic is organized as follows: 

Okay, let's tackle why LCID plummeted. First, I need to look at the data provided. The user mentioned the stock dropped 7.24% on July 22, 2025. Let me check the references.

Looking at Reference 1, the pre-market change was -2.84% and post-market -0.36%. So the biggest drop happened during regular trading. Reference 2 shows the daily percentage changes for the past two weeks. On July 21, the last day before the current date, the change was -7.24%, which matches the overall drop. That's the same as the current day's drop, so maybe it's a continuation.

Now, why the drop? Let's check the news. Reference 3 mentions a partnership with Uber and Nuro for autonomous vehicles. That was announced on July 17, which is a few days before the drop. But the stock surged 36.24% on July 17, so maybe the market reacted positively initially. However, the partnership might have some risks. The article notes potential regulatory challenges and financial risks from high investments. Maybe investors got worried about those risks as the week went on.

Reference 4 talks about stock volatility amid the partnership news. It mentions a 1-for-10 reverse stock split, which was announced around the same time. Reverse splits can sometimes signal distress, and the market might have reacted negatively to that. The article also mentions upcoming earnings on August 5, which could be a factor if investors are concerned about the financials.

Reference 5 from July 19 says Wall Street analysts have a Hold recommendation with a downside of 11.94%. GuruFocus estimates a 196% upside, but the current price is $2.82, so maybe the market is pricing in some skepticism. The partnership with Uber might not be as impactful as hoped, or the financials from the upcoming earnings could be concerning.

Also, Reference 15 and 17 discuss regulatory credit policy changes affecting Tesla and other EV companies. Lucid might be impacted too, as they rely on regulatory credits for revenue. If those credits are drying up, it could hurt their financials, leading to a stock drop.

Putting it all together: The drop on July 22 is likely due to a combination of factors. The initial surge from the partnership news might have led to overbuying, and as the week progressed, concerns about regulatory risks, the reverse stock split, and potential financial impacts from regulatory credit changes caused a sell-off. The upcoming earnings report adds uncertainty, making investors cautious. The market might be reassessing the partnership's viability and the company's financial health, leading to the plummet.

**Conclusion**
Lucid Group (LCID) plummeted by **7.24%** on July 22, 2025 , driven by a combination of market reactions to recent strategic announcements, regulatory risks, and financial uncertainties. The stock also faced pre-market volatility (-2.84%) and post-market adjustments (-0.36%), reflecting investor skepticism about the company's near-term prospects .

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### 📊 **Key Analysis of LCID's Plunge**
#### 1. **Strategic Partnership with Uber and Nuro**
Lucid announced a partnership with Uber and Nuro to deploy 20,000 autonomous vehicles by 2031 . While this collaboration positions LCID in the high-growth autonomous vehicle market, concerns about:
- **Regulatory Risks**: Delays in approvals for Level 4 autonomy systems .
- **Financial Pressures**: High upfront costs for vehicle production and integration .
- **Market Competition**: Potential cannibalization of Lucid’s premium EV sales by cheaper autonomous fleets .

#### 2. **Reverse Stock Split Controversy**
Lucid proposed a 1-for-10 reverse stock split to boost liquidity and attract institutional investors . However, this move raised concerns about:
- **Dilution Risks**: Shareholders could face fractional share conversions .
- **Market Perception**: Reverse splits often signal financial distress .

#### 3. **Regulatory Credit Policy Changes**
Recent U.S. policy shifts aim to phase out regulatory credits for non-compliant automakers . Lucid, like Tesla, relies on these credits for revenue, but analysts predict a **40% drop in credit income by 2026** . This uncertainty weighed on LCID’s stock price.

#### 4. **Earnings Concerns**
Lucid’s Q2 2025 earnings report (due August 5) is expected to reveal:
- **Gross Margin Pressures**: Tariffs and supply chain disruptions could widen losses .
- **Delivery Shortfalls**: Past delays in Saudi Arabia and software glitches in the Lucid Gravity .

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### 📊 **Market Reaction Breakdown**
| **Event** | **Impact** | **Data** |
|-------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------|
| Uber Partnership Announcement | Initial surge (+36.24% on July 17) , followed by profit-taking . | LCID stock price: $2.82 (July 22) . |
| Reverse Stock Split Proposal | Mixed reception; institutional investors cautious . | Shareholder vote scheduled for August 18 . |
| Regulatory Credit Risks | Analyst downgrade warnings; 11.94% downside potential . | Wall Street price target: $2.68 (vs. $2.82) . |

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### 📊 **Conclusion**
Lucid’s stock plunge reflects a perfect storm of strategic risks, financial uncertainties, and market skepticism. While the Uber partnership offers long-term growth potential, near-term challenges like regulatory hurdles, credit policy changes, and earnings pressures are likely to keep LCID volatile. Investors should monitor the Q2 earnings report and regulatory updates closely.