Lucid Motors Gets Past Its Reverse Stock Split Selloff: Can LCID Still Go Higher?

Core Insights - Lucid Motors (LCID) executed a reverse stock split on September 2, which led to a significant decline in stock value, surprising investors with the severity of the sell-off [1] - Despite a recent 5% gain over the last five days, LCID stock remains down 36% year-to-date and trades at a fraction of its all-time highs [2] - The company has managed to remain operational amidst a wave of bankruptcies in the U.S. startup EV sector, but it has been selling stock to cover its growing losses [4] Company Financials - Lucid Motors has received approximately $8 billion in investments from Saudi Arabia's Public Investment Fund (PIF), while its current market capitalization is just over $6 billion, indicating that the company's value is less than the amount invested by PIF [5] - Analysts are generally bearish on LCID, with only two out of 14 analysts rating it as a "Strong Buy." The majority rate it as a "Hold," and one each rates it as a "Moderate Sell" and "Strong Sell" [6] Industry Context - The sentiment towards EV stocks has deteriorated due to changes in the macroeconomic environment, including the elimination of the EV tax credit and the removal of penalties for automakers not meeting emission standards [7] - Lucid Motors faced a tariff impact of $54 million in Q2, adding to the challenges faced by the company and the broader EV industry [7]