There’s more bad news for Tesla rival Lucid Motors.
On Tuesday, shares of the luxury electric vehicle company Lucid Group (NASDAQ: LCID) fell a whopping 10% as the EV maker began trading following its 1-to-10 reverse stock split, which went into effect after Friday’s market close.
In case you missed it, here’s what to know.
What is a reverse stock split?
In short, a reverse stock split is when a corporation consolidates the existing number of stock shares, so there are fewer, higher-priced shares, according to Investopedia.
To be clear, this is the opposite of a stock split, where investors gain multiple shares, often at a lower price.
In an effort to avoid being delisted on the Nasdaq stock exchange, which, like the New York Stock Exchange, requires companies to meet a minimum trading price of $1, Lucid consolidated every ten existing shares into one, cutting outstanding shares from about 3.07 billion to roughly 307.3 million. That means investors got one share for every ten they owned, reducing authorized shares from 15 billion to 1.5 billion.
The Nasdaq gives companies 180 days to raise its share price once shares fall below the $1 threshold for 30 consecutive trading days. The exchange publishes a running list of all the current and upcoming reverse and regular stock splits.
In addition to meeting the Nasdaq’s listing requirements, a reverse split has the potential to make a company more attractive to institutional investors.
However, in Lucid’s case, it hasn’t seemed to help the company win back investors as stock continued to fall on Tuesday. The stock is currently down over 30% year to date.
Lucid’s most recent earnings
Lucid reported a Q2 2025 revenue of $259 million, missing expectations, with a net loss of $855 million for the quarter compared with $790 million for the same period last year.
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