There’s extra dangerous information for Tesla rival Lucid Motors.
On Tuesday, shares of the posh electrical car firm Lucid Group (Nasdaq: LCID) fell a whopping 10% because the EV maker started buying and selling following its 1-for-10 reverse inventory cut up, which went into impact after Friday’s market shut.
In case you missed it, right here’s what to know.
What’s a reverse inventory cut up?
Briefly, a reverse inventory cut up is when an organization consolidates the present variety of inventory shares in order that there are fewer, higher-priced shares, in response to Investopedia.
To be clear, that is the other of a inventory cut up, the place traders acquire a number of shares, typically at a cheaper price.
In an effort to keep away from being delisted on the Nasdaq inventory change, which, just like the New York Inventory Alternate, requires firms to fulfill a minimal buying and selling worth of $1, Lucid consolidated each 10 present shares into one, reducing excellent shares from about 3.07 billion to roughly 307.3 million. Which means traders obtained one share for each 10 they owned, decreasing approved shares from 15 billion to 1.5 billion.
The Nasdaq offers firms 180 days to lift their share worth as soon as shares fall under the $1 threshold for 30 consecutive buying and selling days. The change publishes a operating checklist of all the present and upcoming reverse and common inventory splits.
Along with assembly the Nasdaq’s itemizing necessities, a reverse cut up has the potential to make an organization extra engaging to institutional traders.
Nevertheless, in Lucid’s case, it hasn’t appeared to assist the corporate win again traders, as inventory continued to fall on Tuesday. The inventory is at the moment down greater than 30% 12 months up to now.
Lucid’s most up-to-date earnings
Lucid reported a Q2 2025 income of $259 million, lacking expectations, with a internet lack of $855 million for the quarter, in contrast with $790 million for a similar interval final 12 months.
