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Lucid Reverse-Splits Shares to Avoid Nasdaq Delisting
24 Aug
Summary
- Lucid Group confirms 10-for-1 reverse stock split
- Reverse split aims to lift share price above $1 to avoid Nasdaq delisting
- Lucid losing $2.3 billion annually, burning $3 billion in cash
On August 23, 2025, Lucid Group (NASDAQ: LCID) confirmed it will proceed with a 10-for-1 reverse stock split. The move comes as the luxury electric car company's share price has plummeted to just $2, dangerously close to the $1 threshold that could result in Nasdaq delisting.
The reverse split, announced a month prior, will see every 10 Lucid shares consolidated into a single share, effectively increasing the stock price tenfold. This is a desperate attempt by Lucid to lift its share value and stave off delisting.
However, the company's underlying financial troubles remain unresolved. Lucid is currently losing $2.3 billion annually and burning through over $3 billion in cash, a pace that could deplete its funds in less than a year. Despite the reverse split, these fundamental issues cast doubt on Lucid's long-term viability.
Interestingly, the announcement of the reverse split initially caused a 5% drop in Lucid's stock price. But a broader market rally, driven by comments from Federal Reserve Chairman Jerome Powell, has since pulled the stock up, limiting the decline to just 0.7% as of the afternoon of August 23.
