Lucid Shares Drop 4.35% on $260M Volume Surge Ranking 370th as Production Cuts and Liquidity Pressures Mount

Lucid Group (LCID) fell 4.35% on August 29, 2025, as trading volume surged 49.25% to $260 million, ranking 370th in market activity. The decline followed a downward revision of its 2025 production targets and a Q2 adjusted loss of $0.24 per share, which, while an improvement from the prior year, fell short of market expectations.

Analysts highlighted Lucid's high liquidity burn rate and demand challenges as key concerns. Stifel analyst Stephen Gengaro reduced the price target to $2.10 from $3.00, citing the need for additional capital over the next few years despite the company's "excellent products." The stock is on track to close at its lowest level ever, currently trading at $1.99, below its previous record low of $2.01.

The company announced a 1-for-10 reverse stock split effective after market close on August 29. While the move aims to attract institutional investors rather than avoid delisting, it comes amid a broader industry headwind, including the impending expiration of the $7,500 federal EV tax credit on September 30, which is expected to further pressure sales.

Lucid's production guidance for 2025 was cut to 18,000-20,000 vehicles from an initial target of about 20,000, reflecting ongoing challenges in scaling production. Despite recent milestones like a robotaxi partnership with Uber and record battery performance, the company remains unprofitable and faces hurdles in meeting its Gravity SUV production targets.