Lucid Motors' Shares Plummet Despite Reverse Stock Split

Lucid Motors' shares fell 10% on Tuesday despite a 1-for-10 reverse stock split, which reduced outstanding shares from 3.07 billion to 307.3 million. The move was aimed at avoiding delisting on the Nasdaq stock exchange, which requires a minimum trading price of $1. However, the stock has continued to fall, down over 30% year-to-date, and the company reported a Q2 2025 revenue of $259 million, missing expectations, with a net loss of $855 million for the quarter.

Lucid Motors' shares plummeted by 10% on Tuesday, August 29, 2025, following a 1-for-10 reverse stock split that aimed to avoid delisting from the Nasdaq stock exchange. The reverse split, which took effect after Friday's market close, consolidated every 10 existing shares into one, reducing outstanding shares from about 3.07 billion to roughly 307.3 million. This move was intended to meet the Nasdaq's minimum trading price requirement of $1 per share [1].

The reverse stock split, approved by shareholders at a special meeting on August 18, also reduced the company's authorized shares from 15 billion to 1.5 billion. Despite this effort to boost the per-share price, Lucid's stock continued to fall, contributing to a year-to-date decline of over 30%. The company reported a Q2 2025 revenue of $259 million, missing expectations, and incurred a net loss of $855 million for the quarter, compared to a net loss of $790 million in the same period last year [2].

The reverse stock split was not enough to reassure investors, who remain concerned about the company's operational challenges and reduced production targets. Lucid's shares have dropped more than 10% on Tuesday, following the completion of the 1-for-10 reverse stock split, contributing to investor concerns already stoked by a reduced production forecast and bigger quarterly losses [3]. The company is aiming to mitigate the impact of 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].

Investors should consider the volatility and new output expectations of the company when calculating entry or hedging strategies. The reverse stock split aims to lift Lucid's per-share price, but the company's operational headwinds and reduced production targets have led to cautious investor reactions [2].

References:
[1] https://www.fastcompany.com/91396789/lucid-lcid-stock-price-sinking-today-1-for-10-reverse-split-explained
[2] https://www.investing.com/news/stock-market-news/lucid-stock-falls-after-announcing-1for10-reverse-split-93CH-4217139
[3] https://www.ainvest.com/news/lucid-group-announces-1-10-stock-split-challenging-market-environment-2509/