Lucid (US:LCID) The Motley Foolยท2025-09-09 07:51Group 1: Market Trends and Stock Splits - Artificial intelligence (AI) has been a significant catalyst in the stock market, with a projected global addressable market of $15.7 trillion by 2030 [1] - Stock splits, particularly forward splits, have contributed to the rise of major indices like the S&P 500 and Nasdaq Composite, as they do not affect a company's market cap or operating performance [2][4] - Reverse splits are generally viewed with caution by investors, as they are often associated with struggling companies trying to avoid delisting [5] Group 2: Lucid Group's Reverse Split - Lucid Group executed a 1-for-10 reverse split on August 29, 2025, reducing its outstanding shares from over 3 billion to approximately 307 million and increasing its share price from just below $2 to nearly $20 [9] - Analyst Mickey Legg set a post-split price target of $70 for Lucid, indicating a potential upside of up to 280% from its price at the end of trading on September 5 [10] - Lucid's partnership with Uber, which includes a $300 million investment and plans to deploy 20,000 Lucid Gravity SUVs, is expected to enhance visibility and market presence [11][12] Group 3: Challenges Faced by Lucid Group - Despite the positive developments, Lucid has faced significant challenges, including disappointing sales of its flagship model, the Lucid Air, and production delays for its Gravity SUV [16][19] - The company has revised its production forecasts down from an initial projection of 90,000 units by 2024 to an expected 9,000 units [18] - Lucid ended June with $4.86 billion in liquidity but has burned $1.26 billion in cash from operations in the first half of the year, leading to a $13.8 billion accumulated deficit [21]