Lucid Group Announces 1-for-10 Reverse Stock Split, Explores Partnership

Lucid Group has announced a 1-for-10 reverse stock split to make its stock more accessible to institutional investors. The company's stock has declined 50.6% over the past 52 weeks and is currently down 30.3% YTD. Lucid's Q2 revenue increased by 29.3% to $259.43 million, but missed Wall Street expectations due to slowing demand and Trump administration tariffs impacting the EV industry. The company is exploring a significant partnership that could unlock growth.

Lucid Group (LCID), a leading manufacturer of luxury electric vehicles, has announced a 1-for-10 reverse stock split effective August 29, 2025, with split-adjusted trading beginning on September 2, 2025 [2]. This move aims to make the company's stock more attractive to institutional investors, as it currently trades below the $5 mark, classifying it as a penny stock [3].

The reverse stock split will reduce outstanding shares from approximately 3.07 billion to 307.3 million, while authorized shares will decrease from 15 billion to 1.5 billion [2]. The company's trading symbol will remain LCID, though with a new CUSIP number. Stockholders will receive cash payments for any fractional shares, and no direct action is required from registered stockholders or those holding shares through brokers.

This financial maneuver is designed to address low share price concerns without altering the company's market capitalization or underlying business performance [2]. The total company value remains unchanged, with each shareholder owning fewer shares but each share becoming proportionally more valuable.

Lucid Group's stock has been under significant pressure, declining by 50.6% over the past 52 weeks and 30.3% year-to-date (YTD) [3]. The company's Q2 revenue increased by 29.3% to $259.43 million, but fell short of Wall Street expectations due to slowing demand and the impact of Trump administration tariffs on the EV industry [3]. Despite these challenges, Lucid continues to explore significant partnerships that could unlock growth opportunities.

The reverse stock split is not a regulatory requirement but rather a strategic move to enhance Lucid's equity accessibility and appeal to institutional investors [1]. It is important to note that while a reverse stock split does not fundamentally change the company's financial position, it can signal underlying struggles that led to the low share price initially.

Investors should closely monitor Lucid Group's financial performance and strategic initiatives to assess the impact of the reverse stock split and the company's future prospects.

References:
[1] https://finance.yahoo.com/news/reverse-stock-split-won-t-141932198.html
[2] https://www.stocktitan.net/news/LCID/lucid-group-inc-announces-effective-date-of-reverse-stock-hdot5a6nlj82.html
[3] https://www.burlingtonok.com/news/story/34403391/dear-lucid-group-stock-fans-mark-your-calendars-for-august-29