Why Lucid Group (LCID) Shares Are Sinking Today

Sep 2 - Shares of Lucid Group LCID slipped more than 6% Tuesday as the electric-vehicle maker began trading on a split-adjusted basis following a 1-for-10 reverse stock split that took effect after Friday's close.

The company consolidated every ten existing shares into one, cutting outstanding shares from about 3.07 billion to roughly 307.3 million and reducing authorized shares from 15 billion to 1.5 billion.

The split aims to lift Lucid's per-share price, but investors reacted cautiously after the company reported a second-quarter result that missed analyst expectations and trimmed its 2025 production target to 18,00020,000 vehicles. Those operational headwinds help explain why the stock sits down more than 30% year-to-date.

To investors, the split changes share counts, but not the fundamentals of the company; Lucid continues to have the same production and demand pressures that have led to recent guidance reductions. Traders who calculate entry or hedging strategies should consider volatility and the new output expectations of a company.