Lucid Announces 1-for-10 Reverse Stock Split
EV maker moves to bolster stock price after shares fall 30% year-to-date amid production cuts.
Lucid Group, the luxury electric vehicle maker, announced it will execute a 1-for-10 reverse stock split, a strategic maneuver aimed at increasing its share price after a difficult year. The split is set to take effect after the market closes on August 29, 2025, with shares expected to trade on a split-adjusted basis starting September 2.
The move comes as Lucid's stock has tumbled approximately 30% year-to-date. The company has been navigating production challenges and waning investor sentiment. Earlier this month, Lucid reported second-quarter results that missed analyst estimates and trimmed its full-year production guidance from 20,000 vehicles to a range of 18,000 to 20,000.
A reverse stock split consolidates the number of existing shares into fewer, proportionally more valuable shares. While it doesn't change the company's market capitalization, it is often employed by companies to regain compliance with a stock exchange's minimum price requirements, typically $1.00 per share.
Following the split, every 10 shares of Lucid's common stock will be converted into one share. The total number of authorized shares will also be reduced from 15 billion to 1.5 billion. The company confirmed that no fractional shares will be issued, and stockholders will receive a cash payment in lieu of any fractional shares.
The market's initial reaction was muted. In after-hours trading following the announcement, Lucid shares saw a slight increase of less than 1% to $2.11. The action is largely seen as a mechanical adjustment, but it underscores the broader operational and market pressures facing the EV manufacturer as it works to scale production and compete in an increasingly crowded field.