Lucid Motors Reverse Stock Split: Details

2025-09-15

Lucid Motors carried out a reverse stock split on September 2, 2025. The move was meant to adjust its stock structure, but instead of offering relief, it added new pressure.

As is common after a reverse stock split, Lucid’s stock value dropped, though the steep decline surprised many investors.

In the days that followed, the stock recovered slightly, yet the event left investors asking hard questions about the company’s future and its place in the electric vehicle market.

What Happened with Lucid Motors Stock Split

Lucid Motors (LCID) implemented a reverse stock split earlier this month. This financial adjustment reduced the number of outstanding shares while raising the price of each share proportionally.

Although the company framed it as a strategic decision, history shows that reverse stock splits often signal struggles rather than strength. Investors reacted predictably, sending the stock lower.

In the following week, LCID stock managed to climb about 5%, returning close to the price it held before the split. However, this minor rebound did little to offset the broader picture.

The stock remains down about 36% for the year, reflecting the uphill battle Lucid faces in a tough and changing electric vehicle market.

A Difficult Road for Lucid Motors

Like many other EV startups, Lucid has seen its stock trade at only a fraction of its all-time highs.

Despite these challenges, the company has managed to stay alive while many U.S. electric vehicle peers have collapsed. Still, Lucid continues to rely heavily on selling stock to cover its mounting losses.

One factor keeping Lucid afloat is the financial backing from Saudi Arabia’s Public Investment Fund (PIF), which has invested roughly $8 billion into the company. Interestingly, Lucid’s current market value is just above $6 billion, less than the amount invested by the fund.

This shows how much faith external supporters have placed in Lucid, even when the numbers tell a different story.

Analyst Views on LCID Stock

Wall Street analysts have mixed opinions about Lucid Motors. Out of 14 analysts covering the stock, only two give it a “Strong Buy” rating. Most, around ten, suggest holding, while a small minority recommend selling.

At present, LCID stock trades above its average target price of $19.37. Some see a potential upside, with the highest target price set at $30, suggesting room for growth if the company can overcome its obstacles.

Challenges for the EV Industry

Lucid’s difficulties are not unique. The electric vehicle sector as a whole is struggling with a slowdown in adoption rates in the United States. At the same time, government incentives that once supported EV makers have weakened, leaving companies more vulnerable.

For instance, the removal of EV tax credits and emission penalties has reduced the regulatory advantages many automakers relied on. Trade tariffs have also added pressure, costing Lucid about $54 million in the second quarter alone.

China, in contrast, has surged ahead in EV adoption due to stronger government support. Meanwhile, Tesla still dominates the U.S. market, although its grip has loosened somewhat.

This shift might open opportunities for companies like Lucid and Rivian, yet so far, there is little evidence of a large consumer move toward their vehicles.

Can Lucid Motors Stock Go Higher?

The critical issue for Lucid is whether it can become a sustainable business. At present, it costs the company nearly twice as much to produce a car as it earns by selling it.

This imbalance, along with added expenses such as marketing and depreciation, makes profitability a distant goal.

Lucid must scale up production and deliver more vehicles to change this trajectory. The company is working on expanding its lineup with more affordable models, which could help improve demand and efficiency.

In addition, partnerships with companies like Uber and Nuro provide potential growth opportunities. Uber has agreed to purchase at least 20,000 Lucid vehicles equipped with autonomous driving technology, while Saudi Arabia holds an option to buy up to 100,000 units.

Lucid has also entered into agreements with luxury automaker Aston Martin to supply electric motors and batteries. These types of partnerships could diversify its revenue streams and bring the company closer to financial stability.

FAQ

What is a reverse stock split?

A reverse stock split reduces the number of shares a company has while increasing the price per share proportionally. It does not change the company’s overall value.

Is Lucid a Chinese-owned company?

No, Lucid Group, Inc. is an American automotive and technology company headquartered in Newark, California. However, its majority owner is the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, which holds over 60% of the company's shares.

Is Lucid or Tesla better?

According to a comparison of the 2025 models, the Lucid Air outperforms the Tesla Model S in most key areas, including price, interior quality, seat comfort, acceleration, and range. As of mid-2025, the Lucid Air is also the best-selling luxury electric sedan in the United States.

Why is Lucid losing so much money?

Lucid has been experiencing significant financial losses as it tries to expand its vehicle production. In an effort to improve its manufacturing scale, the company reported a net loss of $855.3 million in the second quarter of 2025. These losses are seen as part of their investment in scaling production and launching new vehicles like the Lucid Gravity SUV.