Arrive AI's 15min chart triggers Bollinger Bands Narrowing, Bearish Marubozu signal.

According to Arrive AI's analysis, the 15-minute chart of the stock has triggered a narrowing of Bollinger Bands and a bearish Marubozu pattern on September 4, 2023 at 13:30. This suggests a decrease in the magnitude of stock price fluctuations, indicating that sellers are dominating the market and bearish momentum is likely to persist.

Lucid Group Inc. (NASDAQ: LCID) has announced a significant corporate action with a 1-for-10 reverse stock split, set to take effect on September 2, 2025. This move, approved by shareholders at a special meeting on August 18, aims to lift the company's per-share price. The reverse split will reduce Lucid's outstanding shares from approximately 3.07 billion to about 307.3 million, while the authorized shares will decrease from 15 billion to 1.5 billion [1]. The company will maintain its NASDAQ ticker symbol (LCID) but will trade under a new CUSIP number following the split.

The reverse stock split comes amidst a challenging period for Lucid Group. The company reported a second-quarter result that missed analyst expectations and trimmed its 2025 production target to 18,000 to 20,000 vehicles [2]. The stock has delivered a 53.77% decline over the past year, underperforming the US Auto industry and broader US market [3]. The company's net loss widened to $855 million, or roughly $0.28 a share, from a loss of $790 million, or $0.34 per share, a year earlier [3].

In addition to the operational headwinds, Lucid Group's stock has dropped more than 10% on Tuesday, following the completion of the reverse stock split, contributing to investor concerns [3]. The company is aiming to soften the blow from policy changes, such as the federal $7,500 EV tax credit set to expire at the end of September, by introducing its own "Lucid Advantage Credit" [3].

The reverse stock split aims to lift Lucid's per-share price, but investors reacted cautiously due to the company's operational headwinds and reduced production targets [2]. Traders should consider volatility and the new output expectations of a company when calculating entry or hedging strategies [2].

Arrive AI's analysis indicates that the 15-minute chart of the stock has triggered a narrowing of Bollinger Bands and a bearish Marubozu pattern on September 4, 2023 at 13:30. This suggests a decrease in the magnitude of stock price fluctuations, indicating that sellers are dominating the market and bearish momentum is likely to persist [2].

References:
[1] https://www.investing.com/news/stock-market-news/lucid-stock-falls-after-announcing-1for10-reverse-split-93CH-4217139
[2] https://www.tradingview.com/news/gurufocus:b050a848b094b:0-why-lucid-group-lcid-shares-are-sinking-today/
[3] https://stocktwits.com/news-articles/markets/equity/why-did-lucid-s-stock-drop-more-than-10-on-tuesday/chwTSlgRdF1