Lucid Motors (LCID) carried out a reverse stock split on Sept. 2, a move that triggered a sharp sell-off. While such declines are common after splits, the extent of the drop surprised many investors.
Shares have since rebounded 5% in the past five days, regaining levels seen just before the split. Still, the stock remains down 36% year-to-date and trades at a fraction of its all-time highs, reflecting broader struggles among US startup EV makers.
Despite the slump, Lucid has avoided bankruptcy while many peers in the sector have collapsed. The company, however, continues to issue new shares to cover ongoing losses, raising concerns about dilution.
Lucid’s survival has been bolstered by the Saudi Public Investment Fund (PIF), which has invested around $8 billion in the EV maker. That figure now exceeds Lucid’s current market value of just over $6 billion, underscoring the company’s steep decline in investor confidence despite deep-pocketed backing.