Why Lucid Group Stock Sank This Week

Group 1 - Lucid Group's shares have decreased by 17.1% amid broader market declines, with the S&P 500 down 2.4% and the Nasdaq-100 down 2.2% [1] - The company plans to initiate a 10-for-1 reverse stock split, which requires shareholder approval, aimed at making the stock more attractive to institutional investors [2][3] - A reverse stock split is typically used to maintain a share price above the $1 minimum required by the NYSE and Nasdaq, although Lucid claims there is no immediate risk of falling below this threshold [3] Group 2 - The company is at a critical juncture, needing to significantly grow sales and reduce costs to achieve profitability, which it has not yet reached [6] - The overall economic environment is challenging, with recent job data indicating a slowdown in hiring, as only 73,000 jobs were added in July, below the expected 100,000 [4]