Lucid Group, Inc.

Key Points
A recent report showing that Tesla has continued to lose market share may have boosted Lucid stock today.
Tesla's weakening hold on the EV market could be good for Lucid, but the picture for investors is more complex.
Continued stock dilution poses a big risk for Lucid investors.
Lucid (NASDAQ: LCID) stock enjoyed a session of strong gains on Tuesday. The electric vehicle (EV) maker's share price rose 5.2% in the day's trading. Meanwhile, the S&P 500 rose 0.2%, and the Nasdaq Composite rose 0.3%.
It's possible that a recent report showing that Tesla has continued to lose market share factored into Lucid's gains today, but the stock has also been highly volatile recently. Despite today's valuation pop, the stock is still down roughly 9% over the last month of trading -- and it has lost ground since the completion of the company's 10-for-1 reverse stock split.
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Reuters published a report yesterday stating that Tesla's market share had recently fallen to its lowest point in almost eight years amid increasing competition from other players in the EV space. That could be a bullish indicator for Lucid's outlook, but the stock still comes with a high degree of risk.
Is Lucid stock a buy right now?
In the second quarter, Lucid recorded a loss of roughly $739.3 million on revenue of $259.4 million. Large losses have been the norm throughout the EV specialist's history as a publicly traded company, and the company would quickly burn through its cash position of approximately $1.8 billion and could be forced to take on sizable debt if it weren't for the backing of Saudi Arabia's Public Investment Fund (PIF).
The PIF owns a majority stake in Lucid and has regularly provided large cash injections in exchange for new shares of the company's stock. Given that the PIF is already the company's largest shareholder by far, it could be said that the Public Investment Fund faces a smaller dilutive impact on a real-terms basis -- and that other shareholders face outsized risk from dilution.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lucid Surged Today -- Is the EV Stock a Buy Right Now?

U.S. President Donald Trump’s unfriendly stance on electric vehicles (EVs) is set to reshape the auto industry. His “Big Beautiful Bill,” passed in July, will end the federal EV tax credits on Sept. 30.
Until then, eligible buyers can still knock $7,500 off the sticker price—on top of other incentives— but once the deadline is here, the perk disappears. Additionally, the bill has scrapped the penalties for automakers who fail to meet Corporate Average Fuel Economy (CAFE) standards.
Just a few years ago, under the Biden administration, automakers were doubling down on EVs. Tax breaks, supportive policies and stricter emissions rules pushed companies to speed up their e-mobility efforts.
But things have changed now. Trump’s rollback of incentives and regulations, along with new tariffs on imported vehicles and parts, is changing the economics of EVs in the United States. The shift is forcing legacy automakers to rethink their electrification plans.
Detroit’s Legacy Carmakers Welcome the Shift
For traditional automakers like General Motors GM and Ford F, the policy change comes as a financial breather. Bloomberg recently reported that this rollback could unlock billions of dollars for Detroit carmakers to reinvest in gasoline-powered and hybrid vehicles.
Ford CEO Jim Farley even called the policy shift a “multibillion-dollar opportunity” for its gas and hybrid business. GM CFO Paul Jacobson echoed the sentiment, saying the removal of fines will start saving the company money as early as 2026.
The reason is simple— without fuel economy fines, Ford and General Motors no longer need to buy regulatory credits from EV-only players. GM has spent $3.5 billion on credits since 2022, while Ford has cut $1.5 billion in similar purchases this year. They can now redirect the money into profitable gas-powered trucks and SUVs.
GM and F currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GM and Ford Scale Back EV Ambitions
This policy reset is showing up in production plans. GM recently announced it will temporarily cut one shift each for the GMC Hummer EV and Cadillac Escalade IQ between Sept. 2 and Oct. 6. While the Silverado EV and Sierra EV pickups remain in production, GM has delayed its second electric truck plant and Buick’s first EV by six months. Instead, the automaker revealed $4 billion in spending for mostly gasoline-powered vehicles—clear evidence it’s not betting everything on EVs anymore.
Ford is making similar adjustments. The company cut its Rouge Electric Vehicle Center in Dearborn—where the F-150 Lightning is built—to a single shift. It also scrapped plans for an all-electric three-row SUV in Ontario. Instead, Ford is leaning into hybrids, especially in its best-selling truck lineup. Farley has said the Ford Blue division, which builds gas and hybrid vehicles, had been shouldering most of the compliance burden under stricter rules. With Trump’s rollback, that division stands to benefit the most. In fact, Ford is retooling its Oakville plant to make Super Duty F-Series pickups starting next year, reversing its earlier plan to build EVs there.
While Detroit’s legacy automakers view the rollback as a relief, the story looks very different for pure play EV companies like Tesla TSLA, Lucid Group LCID and Rivian Automotive RIVN, which relied heavily on incentives and credits to fuel demand and profits.
EV Pure Plays Lose a Safety Net
Tesla, Rivian and Lucid are losing a major source of revenues. That’s because Trump’s rollback not only ends consumer tax credits but also kills the market for regulatory credits.
Under the old rules, automakers that fell short of fuel-economy targets had to either pay fines or buy credits from companies that exceeded the standards—mostly EV makers. Tesla, Rivian and Lucid were prime beneficiaries of this system. Now that the fines are gone, so is the need for credits. And the impact is beginning to show.
Rivian said regulatory credits made up 6.5% of its total revenues in the first half of 2025, but it doesn’t expect any credit sales for the rest of the year. Last year, Rivian earned more than $400 million from these sales. Losing that cushion makes its path to profitability even steeper.
Lucid is facing a similar squeeze. It is already battling demand and profitability challenges, so the loss of this income stream just adds to the hurdles.
Tesla, meanwhile, is taking the biggest hit in absolute dollars. Since 2019, Tesla has generated over $10.6 billion from credit sales—profits that often made the difference during lean quarters. In the last reported quarter alone, Tesla booked $439 million from credits. While that sounds strong, it’s down nearly 50% from the $890 million it earned a year earlier. The decline has been steady, quarter after quarter, and Trump’s rollback threatens to accelerate the slide.
Final Thoughts
GM and Ford, with their deep gas and hybrid portfolios, are among the winners from the EV policy changes. They would gain flexibility, save billions in compliance costs, and push forward with vehicles that still deliver strong margins.
On the losing side are Rivian and Lucid, whose business models counted on credit revenues to partially offset losses from selling EVs. Without that extra income, their road to profitability looks longer and riskier. Tesla, too, faces margin pressure as one of its reliable profit levers disappears.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Trump's EV Moves: Tax Credits Ending, Fines Gone - Winners and Losers

Key Points
Lucid stock is getting a big boost from positive analyst coverage today.
Cantor Fitzgerald thinks Lucid stock could hit $20 per share over the next year.
Lucid's relationship with its largest shareholder could be both a strength and a weakness for other investors.
Lucid (NASDAQ: LCID) stock is seeing strong bullish momentum in Friday's trading thanks to new coverage from an analyst. The electric vehicle (EV) company's share price was up 12.3% in the daily session as of 2 p.m. ET.
Lucid stock is rising quickly today after Cantor Fitzgerald published new coverage. Before the market opened this morning, Cantor released a note on Lucid that raised its one-year target on the stock from $3 per share to $20 per share. While the extent of the pricing increase is exaggerated due to the company's recent 1-for-10 reverse stock split, Cantor's new valuation target still implies upside of roughly 10% even after big gains today.
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Lucid stock has seen high levels of volatility connected to the recent execution of the company's 1-for-10 reverse stock split. The split took effect after the market closed on Aug. 29, and shares saw their first day of trading under the new structure on Sept. 2.
Is Lucid stock a buy right now?
With the Q2 results that it published in August, Lucid announced that it had posted a loss of roughly $739.26 million on sales of $259.4 million in the period. Meanwhile, the business closed out the period with cash and equivalents totaling roughly $1.8 billion.
Normally, losses on the levels that Lucid has been posting would not be sustainable -- but the company has a large and powerful financial backer. Saudi Arabia's Public Investment Fund (PIF) is Lucid's majority stakeholder and regularly provides the EV specialist with capital injections. This relationship could wind up playing a defining role in performance for long-term shareholders.
While the Saudi PIF's heavy investment and continued support of Lucid suggests that the business's large losses are less concerning than they would be in normal circumstances, the dynamic also poses another risk factor for investors. Lucid will likely continue to sell stock to the PIF in order to raise funds, and that poses a big risk to other shareholders.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $678,148!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,052,193!*
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*Stock Advisor returns as of August 25, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lucid Is Skyrocketing Today -- Is the Stock a Buy Right Now?

In trading on Friday, the Global X Lithium & Battery Tech ETF is outperforming other ETFs, up about 7% on the day. Components of that ETF showing particular strength include shares of Lucid Group, up about 11.1% and shares of Sigma Lithium, up about 6.3% on the day.
And underperforming other ETFs today is the SPDR S&P Oil & Gas Exploration & Production ETF, down about 2.5% in Friday afternoon trading. Among components of that ETF with the weakest showing on Friday were shares of Vital Energy, lower by about 6.2%, and shares of SM Energy, lower by about 6.1% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday's ETF Movers: LIT, XOP

Key Points
Reverse stock splits don't come from a position of strength.
Lucid investors are worried about the underlying business.
Growing competition might be the last straw for Lucid.
Luxury electric vehicle (EV) maker Lucid Group (NASDAQ: LCID) has been looking for ways to improve its financial health. It is in a precarious position, losing money, which has led to a declining stock price and the decision to do a reverse split of its stock.
That reverse split occurred this week, and the stock has continued to drop. As of Friday morning, Lucid shares have plunged about 14% this week, according to data provided by S&P Global Market Intelligence.
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The problem isn't just the reverse stock split, though. Lucid's business could be in trouble.
Electric vehicle sales are dropping in the U.S.
The United States is Lucid's primary market. The EV maker also sells its luxury electric sedan in Saudi Arabia in an arrangement with the Saudi government. The Saudi Arabian Public Investment Fund (PIF) is Lucid's largest shareholder with about 60% of its shares.
But Lucid needs U.S. sales to thrive. It has supplemented its Air sedan offering with the new, fully electric Gravity SUV. Lucid needs that product to boost sales. It's a tough environment, though. EV sales in the U.S. slumped 6.3% year over year in the second quarter. That comes amid growing competition as well.
Lucid's 1-for-10 reverse stock split went into effect this week. It doesn't change anything about the valuation of the company or the business itself. Investors recognize it as a sign of problems, though, and Lucid stock has dropped to a split-adjusted record low.
Investors considering the drop as an opportunity have to believe in the success of the Gravity SUV. Lucid has been successful in raising capital thus far, including a recently closed $300 million investment from rideshare company Uber Technologies. But Lucid needs to begin generating much more revenue from the business. That will depend heavily on sales of the Gravity vehicle. Any sign that Gravity sales aren't meeting or beating expectations will mean more downside for Lucid stock.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $678,148!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,052,193!*
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*Stock Advisor returns as of August 25, 2025
Howard Smith has positions in Lucid Group. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Lucid Stock Dropped About 14% This Week

Key Points
Lucid, Uber, and Nuro recently linked up to create a robotaxi service.
Lucid has posted six consecutive quarters of record deliveries.
Production of the Gravity electric SUV is finally accelerating.
Young electric vehicle (EV) makers have had a bumpy road recently, including Lucid (NASDAQ: LCID). Not only has the U.S. EV market taken off more slowly than anticipated, but the current government administration is dead set on rolling back incentives for EVs and adding tariffs to imported vehicles and parts, which adds to the uncertainty facing many automakers.
That said, the long-term future is almost certainly electric. Here are two reasons long-term investors should take a hard look at Lucid.
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1. Overnight robotaxi
In an announcement that seemingly came out of left field, Uber Technologies announced it plans to invest $300 million into Lucid in a robotaxi deal that aims to start in one major U.S. city late next year. Starting in 2026, over the next six years, Uber will acquire and deploy over 20,000 Lucid Gravity crossovers equipped with Nuro's autonomous vehicle technology. The announcement comes at a time when interest in self-driving technology is on the rise again, after the first wave of enthusiasm produced as many questions and complications as it did results.
It also comes at a time Tesla has launched a robotaxi trial in Austin, Texas, and Alphabet's robotaxi unit Waymo is expanding its network. In fact, Waymo has quietly been growing for years and operates in multiple U.S. cities with roughly 1,500 vehicles on the road -- it crossed 100 million miles of autonomous driving in July.
Not only does this bring in a customer acquiring Lucid vehicles and bringing in $300 million of investment, it also has the potential to get tens of thousands of people in Lucid vehicles for brand awareness. It's a no-brainer move for Lucid, and certainly a reason that should intrigue long term investors.
2. Gaining momentum
While Lucid's early years were marred with delays, disruptions, and disappointments, the young EV maker has gained some serious momentum of late. Consider that Lucid just posted its sixth consecutive quarter of record deliveries, with the second quarter's 3,309 deliveries a 38% increase over the prior year.
The company has been slower than hoped to accelerate production of its newly launched Gravity SUV. But Lucid expects to quickly ramp production in the near term, just in time for the market's pull-ahead in demand due to the federal $7,500 tax credit expiration at the end of September.
Lucid is also gaining momentum with brand awareness by adding Timothée Chalamet, an award-winning actor and cultural icon, as the company's first global brand ambassador. Lucid also has plans to continue expanding its product lineup after initially focusing on delivering two core vehicles: its Air sedan and the Gravity SUV. But after the Gravity SUV, a midsize SUV and possible special editions are due, similar to the high-performance Sapphire version of the Lucid Air.
What it all means
Lucid has delivered a solid 2025 despite challenging macroeconomic conditions and uncertainties with tariffs. It's zeroed in on disciplined cost management, brand building, and accelerating the production and deliveries of its Gravity SUV. The company is also burning cash rapidly and needs to continue strengthening its balance sheet.
That said, while there may be a few bumpy quarters for the U.S. EV market over the next year, Lucid is gaining momentum and emerging as a viable long-term EV maker. As always, Lucid remains a high-risk, high-reward company and should remain a small position in portfolios.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,639!*
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*Stock Advisor returns as of August 25, 2025
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Reasons to Buy Lucid Before It's Too Late

Key Points
Lucid executed a 1-for-10 reverse stock split after hours on Friday.
The EV maker continues to report wide losses even as production grows.
The reverse stock split won't affect the business's fundamentals.
In its first trading day since it executed a reverse stock split after hours on Friday, Lucid Group (NASDAQ: LCID) stock was heading lower today as investors seemed to absorb the reality of that move this morning. The broader sell-off in the market, which may be related to uncertainty around interest rate cuts later this month, also likely pushed the electric vehicle (EV) stock lower.
As of 10:11 a.m. ET, the stock was down 4.6%.
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Lucid goes in reverse
On Aug. 21, Lucid announced that it would execute a 1-for-10 reverse stock split, which was approved at a special stockholder meeting on Aug. 18. The stock pulled back 3% on Aug. 22 after that announcement.
The move reduced shares outstanding from 3.07 billion to 307.3 million, and seemed designed to lift the stock out of penny stock range as it had been trading below $5 a share since 2023.
Companies sometimes execute reverse stock splits to stay in compliance with stock exchange standards, though this doesn't seem to have directly impacted Lucid's decision, as the Nasdaq Stock Market typically requires listed stocks to trade above $1 a share.
What's next for Lucid
In a challenging market for electric vehicles, Lucid has struggled to ramp up production and is still a long way from profitability. While its high-end vehicles have received a number of accolades, the company reported a generally accepted accounting principles (GAAP) operating loss of $803 million in the second quarter on just $259.4 million in revenue, showing the business is a long way from viability.
Ultimately, investors are better off focusing on the underlying performance of the business rather than the reverse stock split, which doesn't directly affect the company's fundamentals.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,639!*
Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Lucid Group Stock Was Falling Today

Key Points
Your share price would probably wither too if you enacted a reverse stock split.
Lucid's took effect after the market closed that day.
It didn't seem like many investors wanted to hop into the driver's seat with Lucid Group (NASDAQ: LCID). The maker of high-end electric vehicles (EVs) saw its share price dive by more than 4% on the day, as a reverse stock split took effect after market close, and an analyst made a bearish adjustment to his take on the company.
By comparison, the S&P 500 was in better form, with a decline of only 0.6%.
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Time to split
It's tough to be bullish on a company just before a 1-for-10 reverse stock split kicks in. As this happened late Friday afternoon, Lucid stock felt like a title best avoided. After all, reverse stock splits usually occur when a company's equity has traded consistently below minimum exchange-listing requirements. That's the case with Lucid, and it wasn't pleasant to be reminded of the situation.
Given that, it was a bit surprising that only one analyst became notably more pessimistic about Lucid's future. This was Stifel's Stephen Gengaro, who before market open chopped his price target to a post-slipt $2.10 per share from his previous $3.00. He isn't losing all hope for the company, however, as he left his hold recommendation unchanged.
Gengaro made his move in consideration of Lucid's second quarter results and update, according to reports. Although the company slightly edged past the analyst's estimate for revenue, the company's gross profit and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) missed the mark. On top of that, Lucid reduced its production guidance for this year.
Funds wanted
More positively, Gengaro waxed bullish about Lucid's cutting-edge technology and considers its foundational Air sedan and the soon-to-be introduced Gravity SUV to be fine products. Yet given the state of the company's finances, it will surely need to raise additional capital in the coming years.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $664,110!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,104,355!*
Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 186% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Lucid Stock Skidded to a More Than 4% Loss Today

Key Points
Lucid is implementing a 1-for-10 reverse stock split on Aug. 29.
Research indicates the stock price is likely to fall further after the reverse split.
The company may be worth considering after the reverse split.
Electric vehicle (EV) manufacturer Lucid Group (NASDAQ: LCID) is making headlines again... but not the kind investors like to see.
The maker of the luxury Lucid Air sedan and Lucid Gravity SUV is implementing a reverse 1-for-10 stock split, effective at 5 p.m. on Friday, Aug. 29. Reverse splits often mean a company's in trouble, and indeed, the stock price has fallen by more than 30% since the company announced the reverse split on July 17.
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But with the stock now trading at its lowest levels ever, could there be an advantage to buying before the reverse split?
How the reverse split will work
Often, a reverse split is used to keep a company's share price above the $1 minimum that the Nasdaq Stock Market requires for listing, but it doesn't seem like Lucid's shares are in any immediate danger of falling that low. Rather, the company says it's trying to stay above the internal minimums set by some institutional buyers.
Lucid's 10-for-1 reverse split won't affect the total value of an investor's stake. After the split, instead of having, say, 100 shares worth about $2 each (for a total value of about $200), a shareholder would have 10 shares worth about $20 each (for a total value of about $200). In theory, the company's market capitalization -- currently about $6.3 billion -- won't change, unless of course there's a flurry of buying or selling immediately after the reverse split.
But a flurry of selling may be exactly what will happen.
A likely price drop
Research indicates that stocks that undergo a reverse split are likely to experience a drop in price, including a sharp drop when the reverse split occurs, and a further "downward drift" over the following months.
This may be a result of the liquidation of odd share lots. Because Lucid's reverse split involves trading one "new" share for 10 "old" shares, investors who hold less than 10 shares will have those odd shares automatically liquidated in exchange for cash. It's possible this liquidation sparks downward movement in the share price. Other research suggests that increased short-selling in the wake of the reverse split is to blame.
Regardless of the cause, this is exactly what happened to Lucid's fellow EV company Canoo. Canoo -- which has since filed for bankruptcy -- did a 20-for-1 reverse split of its shares on Dec. 24, 2024. Its stock price fell 7% on the day of the reverse split, and drifted more than 20% further downward over the next few weeks.
For this reason alone, investors should probably wait until after the reverse split to buy Lucid's shares. If they want to buy them at all.
Plenty of time to buy
In its most recent earnings report, Lucid not only posted a larger-than-expected loss, but also lowered its production forecasts for the year from "about 20,000 vehicles" to 18,000 to 20,000 vehicles, citing the "continuously changing market environment and external factors." Meanwhile, the $7,500 federal EV tax credit is disappearing on Sept. 30, which will likely reduce EV sales further. It's expected to be a rocky second half of 2025 for the U.S. EV industry as a whole.
While there have been some recent bright spots for Lucid -- its robotaxi partnership with Uber (NYSE: UBER), for example, or its vehicles' record-setting battery life, or its 38% year-over-year increase in vehicle deliveries in Q2 -- the company is still unprofitable, burning cash, and behind on its Gravity SUV production targets.
There's certainly a case to be made for buying Lucid shares as part of a high-risk/high-reward portfolio strategy, but there's little incentive to rush to do so. Investors would be smart to keep an eye on the share price in the wake of the reverse split before buying in.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $664,110!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,104,355!*
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John Bromels has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Lucid Stock Ahead of Its 1-for-10 Reverse Stock Split?

Key Points
Lucid's 1-for-10 reverse stock split will take effect on Sept. 2.
Its trading price will jump 900%, but its valuation will stay the same.
Lucid is buying itself more time to scale up its business, but it faces tough challenges.
Lucid Group (NASDAQ: LCID), a maker of luxury electric vehicles (EVs), will execute its 1-for-10 reverse stock split after the market close on Aug. 29. That means every 10 shares of Lucid, which currently trade at about $2 each, will be swapped for one share at around $20.
That's why Lucid's stock price will jump 900% when the market opens again on Sept. 2. Let's see what that reverse split might mean for its investors.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
A reverse stock split is generally a red flag
Most investors are likely more familiar with forward stock splits, which split a high-flying stock into more affordable slices. For example, when Tesla (NASDAQ: TSLA) executed its first 5-for-1 stock split in August 2020, its trading price dropped from roughly $2,200 to around $440. After Tesla's stock price more than doubled to about $900 in August 2022, it reduced its stock price to about $300 with another 3-for-1 split.
Those forward stock splits didn't alter Tesla's market cap or valuations, but they made it easier for smaller retail investors to buy a round lot (100 shares) of its stock. That made it cheaper to trade options (since a single contract is tethered to a round lot), gave it more ways to pay its stock-based compensation, and boosted the stock's liquidity.
A forward stock split is also a bullish signal because it's usually executed when a stock is rising. A reverse stock split is a bearish one because it's executed when a stock is dropping, and it's usually only done to keep a stock's price above $1. If a stock drops below $1 for an extended period, it could be delisted from whatever exchange it is trading on (in Lucid's case, it's the Nasdaq). Therefore, Lucid's reverse stock split should protect it from being delisted for the foreseeable future, but it won't resolve its underlying problems.
What are Lucid's underlying problems?
When Lucid went public by merging with a special purpose acquisition company (SPAC) four years ago, it attracted a lot of attention because it was led by Peter Rawlinson, Tesla's former chief vehicle engineer (he developed Tesla's Model S). Lucid positioned its first vehicle, the Air sedan, as a pricier but more luxury-oriented rival for the Model S.
Prior to its public debut, Lucid claimed it could deliver 20,000 vehicles in 2022, 49,000 vehicles in 2023, and 90,000 vehicles in 2024. Unfortunately, it only delivered 4,369 vehicles in 2022, 6,001 vehicles in 2023, and 10,241 vehicles in 2024. It also postponed the launch of its second vehicle, the Gravity SUV, from 2024 to 2025. Rawlinson stepped down from his CEO and chief technology officer roles this February, and Lucid's board still hasn't appointed a permanent successor yet.
Lucid struggled with supply chain constraints, intense competition, and macro headwinds for the broader EV market. But it's still firmly backed by Saudi Arabia's Public Investment Fund (PIF), which owns more than 60% of its shares, and it claims it has adequate liquidity ($4.86 billion) to ramp up its production of the Gravity SUV. It's also been expanding its AMP-1 plant in Arizona and its new AMP-2 plant in Saudi Arabia to support that growth.
But Lucid could be running out of time. In 2024, its revenue rose 36% to $808 million, but its net loss widened from $2.8 billion to $3.1 billion. That means it's still losing a staggering $299,000 for each vehicle it sells. Lucid already reduced the price of the Air multiple times over the past four years (from a starting price of $80,000 to around $71,400 today) to stay competitive, so it can't simply raise its prices to pass its high manufacturing costs onto its customers.
What are Lucid's near-term plans?
For 2025, Lucid aims to produce 18,000 to 20,000 vehicles as it keeps selling Air sedans and delivers more Gravity SUVs. In 2026, it plans to launch a more affordable SUV (which might be called Earth) to keep pace with Tesla and other EV makers. If it successfully executes those plans, analysts expect its revenue to surge 61% to $1.3 billion in 2025 and jump another 90% to $2.5 billion in 2026. They also expect it to narrow its net loss to $2.8 billion in 2025 and $2.4 billion in 2026.
That progress could bring back the bulls, but Lucid is still tiny compared to Tesla, which delivered 1.79 million vehicles and generated $97.7 billion in revenue in 2024. With a market cap of $6.4 billion, Lucid trades at 5 times this year's sales. Tesla, which is worth $1.13 trillion, trades at 12 times this year's sales.
So if Lucid gets its act together, its stock could double or triple if it commands a similar price-to-sales ratio as Tesla. Lucid's reverse stock split might buy it more time for those plans to bear fruit, but it doesn't make it a more attractive investment. So for now, I'd avoid this volatile EV stock until a few more green shoots appear.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,113,120!*
Now, it’s worth noting Stock Advisor’s total average return is 1,068% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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