Lucid Group Proposes 1-for-10 Reverse Stock Split
Lucid Group (NASDAQ: LCID) announced a proposed 1-for-10 reverse stock split aimed at bolstering its stock price, which has plummeted over 94% from its all-time high. If approved, this consolidation would elevate the share price from approximately $3 to $30 but reduce the number of shares in circulation by 90%. This move is viewed as an effort to comply with Nasdaq’s minimum share price requirements.
New Partnership with Uber Technologies
In a significant development, Lucid has partnered with Uber Technologies and Nuro, committing to supply 20,000 vehicles equipped with autonomous technology over six years. This partnership comes with Uber making “multi-hundred-million dollar investments” in Lucid, providing a much-needed sales boost as the company struggles with significant operating losses, having reported a $366 million net loss in Q1 2025.
Financial Outlook for Investors
While the reverse stock split itself may not be alarming, ongoing challenges persist as Lucid faces concerns over its need for continuous fundraising and potential shareholder dilution. Investors are advised to remain cautious until the company can increase its sales volume significantly to stabilize its operations.
