Lucid Announces 1-For-10 Reverse Stock Split: How's The EV Stock Reacting?

Core Viewpoint - Lucid Group Inc announced a 1-for-10 reverse stock split and a reduction in authorized shares, reflecting ongoing challenges in performance and production guidance [1][2][3]. Group 1: Stock Split and Share Reduction - The reverse stock split will reduce the number of authorized shares from 15 billion to 1.5 billion, effective after market close on August 29, with trading on a split-adjusted basis starting September 2 [2]. - The stock split is occurring as Lucid shares have declined approximately 30% since the beginning of the year [3]. Group 2: Production and Financial Performance - In the second quarter, Lucid produced 3,863 vehicles and delivered 3,309 vehicles, missing analyst estimates on both revenue and earnings [3][4]. - The company has revised its production guidance for 2025, lowering it from approximately 20,000 vehicles to a range of 18,000 to 20,000 vehicles, with expectations for Lucid Gravity production to ramp up in the second half of the year [4]. Group 3: Market Reaction - Following the announcement, Lucid shares were up 0.93% in after-hours trading, priced at $2.11 at the time of publication [7].