LCID: Lucid Stock Too Cheap? It’s Getting Ten Times More Expensive — Here’s Why

It’s a reverse stock split and it will make the shares worth ten times their price now. But that’s about it — market cap stays the same, all stays the same.

🔀 Reverse Split Incoming

• Lucid stock LCID is changing the math on its share price — literally. The luxury EV maker announced Thursday evening that it will execute a 1-for-10 reverse stock split, effective September 2.
• What’s that supposed to do? For one, it will send shares soaring in price overnight without adding a dime to the company’s value. While the nominal price goes up, the market cap stays exactly the same — and traders know it.
• Starting September 2, every 10 Lucid shares become one, instantly boosting the share price 10x. Here’s an example: Thursday’s close of $2.09 would be $20.90 at the open.

😍 Things Will Look Good on Surface

• The company will slash its outstanding shares from 3.07 billion to 307.3 million and cut authorized shares from 15 billion to 1.5 billion, streamlining the capital structure without changing ownership stakes.
• Traders often treat reverse stock splits as a warning sign, reading them as a signal that management is trying to avoid a delisting or mask weakness — and premarket trading shows that same skepticism, with Lucid lower by more than 2% Friday.
• Lucid’s move appears aimed at boosting investor optics rather than changing fundamentals, as a higher share price can attract institutional buyers and potentially ward off retail volatility.

😮 Why Lucid Wants a Higher Stock Price

• But keep in mind that reverse splits don’t magically fix profitability issues or improve demand — the company still has to prove it can scale production and compete with Tesla TSLA, Rivian RIVN, and others.
• Despite upbeat headlines this year — including a partnership with Uber and gaining access to Tesla’s charging network — Lucid’s stock is down 30% year to date, showing investor patience remains thin.
• Back in 2021, shares were floating as high as $60, giving the EV maker a stratospheric valuation. Now, it’s about $7 billion with shares gyrating 96% off their record high.

👀 What It Means for Traders

• Nominal price vs. real value: The market cap doesn’t change. If you owned 100 shares at $2.09, you’ll own 10 shares at $20.90 — same total value.
• Volatility risk: Reverse splits often invite short-term selling pressure as traders offload shares on perceived weakness, and Lucid may not be immune.
• Psychological impact: A higher price point can make the stock appear more “premium,” potentially drawing new institutional inflows — but unless earnings or delivery numbers improve, fundamentals still rule.