Lucid Group Just Executed a 1-for-10 Reverse Stock Split. Is This the Catalyst the EV Maker Has Been Waiting for?

Core Viewpoint - Lucid Group executed a 1-for-10 reverse stock split to increase its share price and reduce outstanding shares, aiming to attract a broader range of investors despite a challenging year for the EV industry [1][2][5]. Company Summary - The reverse stock split reduced Lucid's outstanding shares from over 3.07 billion to 307.3 million, increasing the stock price from just over $2 to about $17 [3]. - Management believes the reverse split will make the stock more appealing to investors, especially compared to other EV stocks like Tesla and Rivian, which trade at higher prices [5]. - Lucid's revenue for the second quarter was $259 million, down from $280 million the previous year, and the company lowered its production guidance from 20,000 vehicles to a range of 18,000 to 20,000 [6]. Industry Summary - The EV industry is facing difficulties, particularly after the elimination of the $7,500 federal EV tax credit and the halt in the expansion of EV charging stations [6][10]. - Lucid has partnered with Uber, which will invest $300 million in the company, as part of a plan to deploy 20,000 robotaxis over the next six years [8]. - Despite a 32% revenue growth in the first half of 2025, Lucid's market cap exceeds $57 billion, indicating a high valuation relative to its sales [9].