Lucid Group Stock Hits New 52-Week Low Amid Investor Pessimism

Lucid Group Inc LCID stock has hit a new 52-week low, down 6.6% to $15.67. The decline follows a reverse stock split and reduced 2025 production guidance, amid investor pessimism after a disappointing Q2 earnings report. The stock has fallen nearly 50% YTD and faces broader headwinds, including the end of federal EV tax credits. Despite a partnership with Uber, investor confidence remains low.

Lucid Group Inc. (LCID) stock has plummeted to a new 52-week low, declining 6.6% to $15.67. The latest drop follows a reverse stock split and reduced 2025 production guidance, as investor sentiment remains pessimistic following a disappointing Q2 earnings report. The stock has fallen nearly 50% year-to-date (YTD) and faces broader headwinds, including the expiration of federal EV tax credits. Despite a strategic partnership with Uber, investor confidence in Lucid Group remains low.

The stock's decline comes after a challenging year for the electric vehicle manufacturer. According to InvestingPro data, Lucid Group's stock is in oversold territory, with a current market capitalization of $6.08 billion [1]. Over the past year, the company's stock has experienced a significant decline, with a 1-year change of -48.17%. Despite showing strong revenue growth of 39% in the last twelve months, Lucid faces profitability challenges with negative gross margins.

The recent low underscores the volatility and competitive pressures faced by emerging players in the automotive industry. While maintaining a healthy current ratio of 2.58, indicating strong short-term liquidity, the company’s rapid cash burn rate remains a key consideration for investors [1].

Lucid Group, Inc. implemented a 1-for-10 reverse stock split, reducing its authorized shares from 15 billion to 1.5 billion. This change, approved by stockholders and the board, decreased the number of outstanding shares from approximately 3,072.6 million to about 307.3 million. No fractional shares will be issued; instead, stockholders entitled to them will receive cash payments [1].

Stifel has lowered its price target for Lucid Group to $2.10 from $3.00, maintaining a Hold rating. This adjustment follows Lucid’s second-quarter results, where revenue slightly exceeded Stifel’s forecast, but gross profit and adjusted EBITDA fell short [1].

Lucid Group announced plans to unveil a new concept vehicle based on its Gravity SUV at the Monterey Car Week. The event will also feature public demonstration drives of the Air sedan and Gravity SUV models for the first time [1].

Despite a $300 million investment from Uber, the stock dropped 8% to $15.43, reflecting investor caution amid macroeconomic uncertainty and broader market challenges. Over the past year, Lucid’s shares have dropped 53.77%, significantly underperforming the U.S. auto industry’s 42.8% gain and the broader U.S. market’s 17.5% return [2].

Strategic positioning remains a key factor for Lucid Group. The company continues to differentiate itself in the EV market with premium vehicles like the Lucid Air and Lucid Gravity, emphasizing performance, efficiency, and design. The Uber-backed robotaxi program may provide a new revenue stream and showcase Lucid’s advanced technology at scale.

However, long-term success will depend on the company’s ability to deliver consistent earnings improvements, reduce dependence on external capital, and navigate competitive pressures in both the EV and autonomous vehicle sectors.

References:
[1] https://www.investing.com/news/company-news/lucid-group-stock-hits-52week-low-at-1854-usd-93CH-4219597
[2] https://parameter.io/lucid-group-inc-lcid-stock-stock-down-8-amid-300m-uber-investment-stock-split-and-market-challenges