Shares of electrical car maker Lucid Group Inc LCID are falling Friday afternoon as the corporate prepares to execute its deliberate reverse inventory cut up after the closing bell.
What To Know: The luxurious EV maker is about to enact a 1-for-10 reverse inventory cut up after the market closes at the moment, a transfer accepted by stockholders on August 18. The inventory will start buying and selling on a split-adjusted foundation on Tuesday.
This motion is designed to elevate the corporate’s share value by consolidating each ten shares of frequent inventory into one. The maneuver will lower the variety of excellent shares from roughly 3.07 billion to 307.3 million. In a concurrent transfer, the whole variety of approved shares will likely be diminished from 15 billion to 1.5 billion.
The reverse cut up comes at a difficult time for Lucid. The corporate’s inventory has seen a roughly 34% decline year-to-date, a slide exacerbated by a latest second-quarter earnings report that failed to fulfill analyst expectations.
Compounding these difficulties, Lucid just lately adjusted its 2025 manufacturing steerage downwards, now anticipating a spread of 18,000 to twenty,000 autos.
Benzinga Edge Rankings: Reflecting the inventory’s latest struggles, Benzinga Edge proprietary rankings present Lucid with a weak Momentum rating of simply 12.46.
Worth Motion: In keeping with information from Benzinga Professional, LCID shares are buying and selling decrease by 4.35% to $1.98 Friday afternoon. The inventory has a 52-week excessive of $4.29 and a 52-week low of $1.93.
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How To Purchase LCID Inventory
In addition to going to a brokerage platform to buy a share – or fractional share – of inventory, you can even acquire entry to shares both by shopping for an trade traded fund (ETF) that holds the inventory itself, or by allocating your self to a technique in your 401(okay) that may search to accumulate shares in a mutual fund or different instrument.
For instance, in Lucid Group’s case, it’s within the Shopper Discretionary sector. An ETF will seemingly maintain shares in lots of liquid and enormous firms that assist monitor that sector, permitting an investor to realize publicity to the tendencies inside that section.
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