Bloomberg Expert Warns of Bearish Trend Following KDJ Death Cross and Marubozu Pattern

As observed on the 15-minute chart, the presence of a KDJ Death Cross and a Bearish Marubozu on September 3, 2025 at 11:15 indicates a shift in the momentum of the stock price towards a downward trajectory. This suggests that the sellers have taken control of the market and there is a likelihood of further price decreases.

Lucid Group Inc. (NASDAQ: LCID), a leading manufacturer of electric vehicles, has announced a 1:10 reverse stock split set to take effect on September 2, 2025. This move comes amidst a challenging period for the company, which has seen its stock price decline significantly over the past year. The reverse stock split aims to lift the per-share price, but investors remain cautious due to the company's operational headwinds and reduced production targets.

The reverse stock split, approved by shareholders at a special meeting on August 18, will reduce Lucid’s outstanding shares from approximately 3.07 billion to about 307.3 million [1]. Along with the reverse split, the company will reduce its authorized shares from 15 billion to 1.5 billion. The move will not affect the par value of the common stock, and no fractional shares will be issued. Shareholders will receive cash payments in lieu of any fractional shares [1].

Lucid Group 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].

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].

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].

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