Why Lucid Stock Skidded to a More Than 4% Loss Today

Core Viewpoint - Lucid Group's stock price declined over 4% following a reverse stock split and a bearish price-target adjustment by an analyst, contrasting with the S&P 500's smaller decline of 0.6% [1] Group 1: Stock Performance and Market Reaction - The reverse stock split, a 1-for-10 adjustment, took effect late Friday, leading to negative sentiment among investors [2] - The stock's decline reflects concerns about Lucid's ability to meet exchange-listing requirements, as the company has consistently traded below these thresholds [2] Group 2: Analyst Insights - Analyst Stephen Gengaro from Stifel reduced his price target for Lucid from $3.00 to $2.10 post-split, maintaining a hold recommendation despite the downgrade [3] - Gengaro's adjustment was influenced by Lucid's second quarter results, where revenue slightly exceeded estimates, but gross profit and non-GAAP EBITDA fell short [4] Group 3: Company Outlook and Financial Needs - Gengaro expressed optimism about Lucid's technology and product offerings, including the Air sedan and the upcoming Gravity SUV, but highlighted the need for the company to raise additional capital in the coming years due to its financial state [5]