Lucid Group Trading Halted Amid Pending News

Lucid Group's (LCID) trading has been halted, pending news.

Lucid Group Inc. (LCID) has seen its trading halted, pending the announcement of a significant corporate action. The company has scheduled a 1-for-10 reverse stock split, which is set to take effect after the market closes on August 29, 2025. The adjusted shares will begin trading on September 2, 2025. This move aims to lift the company’s share price by consolidating every ten shares of common stock into one, reducing the number of outstanding shares from approximately 3.07 billion to 307.3 million [1].

The reverse stock split comes at a challenging time for Lucid. The company’s stock has seen a roughly 34% decline year-to-date, exacerbated by a recent second-quarter earnings report that failed to meet analyst expectations [1]. Additionally, Lucid recently adjusted its 2025 production guidance downwards, now anticipating a range of 18,000 to 20,000 vehicles [1].

The reverse stock split is designed to make the stock more attractive to institutional investors, as it is currently classified as a penny stock below the $5 mark [4]. The company is also exploring a significant partnership, which could unlock another growth dimension. This move follows a period of declining stock performance, with shares down by 30.3% year-to-date (YTD) and 50.6% over the past 52 weeks [4].

Lucid Group Inc. manufactures electric vehicles and designs, develops, and builds energy storage systems for electric vehicles. The company was founded in December 2007 and is headquartered in Newark, California. Lucid's stock has traded between a low of $1.93 and a high of $4.43 in the past year, with a current market capitalization of approximately $6.39 billion [3].

The company’s recent quarterly results have also led to a decline in the stock. Over the past month, the shares have been down by 27.9%. Despite the selloff, Lucid Group’s stock trades at a stretched valuation, with its price sitting at 6.15 times sales, which is higher than the industry average of 0.98 times [4].

Lucid Group’s Q2 Results Missed Wall Street Expectations On Aug. 5, Lucid reported its second-quarter results for fiscal 2025. The company’s total revenue increased by 29.3% from the prior year’s period to $259.43 million. However, this fell short of the Wall Street analysts’ expected consensus figure of $280 million. The reason for this topline miss was the slowing demand in the EV market, with customers increasingly opting for cheaper hybrid cars. The Trump administration’s tariffs have also impacted the EV industry, and the $7,500 EV tax credit is set to expire in September. The company’s rollout of the Gravity SUV has been slower than expected. However, Lucid is offering a $7,500 lease discount on the Gravity SUV in Q4 to help offset the loss of the federal tax credit. Amid all this, in July, Lucid gave its shareholders a reason to cheer when it was announced that it had formed a next-generation partnership with Uber (UBER) to launch robotaxis. This program will see Uber deploy a minimum of [4].

References:
[1] https://www.benzinga.com/trading-ideas/movers/25/08/47424546/whats-going-on-with-lucid-group-stock-6
[2] https://www.cnn.com/markets/stocks/LCID
[3] https://site.financialmodelingprep.com/market-news/lucid-group-inc-lcid-announces-reverse-stock-split
[4] https://finance.yahoo.com/news/dear-lucid-group-stock-fans-202954239.html