Home / Business and Economy / Lucid Shares Plunge 20% After Reverse Stock Split
Lucid Shares Plunge 20% After Reverse Stock Split
6 Sep
Summary
- Lucid stock falls 7.5% despite S&P 500 and Nasdaq gains
- Reverse stock split executed earlier this week
- Lucid shares down nearly 20% since split
On September 6, 2025, shares of electric vehicle maker Lucid (NASDAQ: LCID) are continuing their steep decline, falling 7.5% as of 1:55 p.m. ET. This drop comes despite the S&P 500 and Nasdaq Composite both gaining 0.5% on the day.
The stock's woes began earlier this week when Lucid executed a reverse stock split. When trading opened on Tuesday, Lucid shareholders had 10% as many shares, each of which was worth 10 times as much. While this move, in theory, does not affect the overall value of an investor's stake, it has had a significant negative impact in practice. Reverse stock splits are often viewed by the market as a sign that a company is in trouble and at risk of being delisted.
As a result, Lucid shares have plummeted nearly 20% since the split was announced. The company claimed the decision was made to make the stock more attractive to institutional investors, but the move has clearly backfired, hammering the stock's price. Analysts remain skeptical about Lucid's ability to execute a successful turnaround, advising investors to steer clear of the troubled EV maker's stock.
