TLDR
- Lucid Group stock dropped 2.4% to $2.29 in mid-day trading with volume down 87% from average daily levels
- The EV maker missed earnings estimates with ($0.28) EPS loss versus ($0.22) consensus, despite 29.3% revenue growth year-over-year
- Company secured major robotaxi partnership with Uber for over 20,000 Gravity SUVs to be deployed over six years starting late 2026
- Lucid proposed a 1-for-10 reverse stock split that would increase share price 10x to avoid potential delisting and attract institutional investors
- Production guidance was cut to 18,000-20,000 vehicles for full year from previous 20,000 vehicle forecast due to supply issues
Lucid Group shares fell 2.4% to $2.29 during Thursday’s trading session. The decline came with trading volume significantly reduced, dropping 87% from the typical daily average of 117.4 million shares to just 15.8 million shares.
The stock movement follows the company’s recent quarterly earnings report released on August 5th. Lucid reported a loss of $0.28 per share, missing analyst expectations of $0.22 per share by six cents.
Despite the earnings miss, the electric vehicle manufacturer posted revenue of $259.43 million for the quarter. This figure fell short of analyst estimates of $288.10 million but represented a 29.3% increase compared to the same quarter last year.
Recent Developments Drive Mixed Investor Sentiment
The earnings disappointment comes after a strong July performance that saw Lucid stock surge 16.6% during the month. The rally was driven by several key announcements and partnerships that caught investor attention.
One major catalyst was Lucid’s partnership agreement with Uber Technologies for autonomous vehicles. Under the deal, Uber will purchase over 20,000 Lucid Gravity SUVs equipped with Nuro’s Level 4 autonomy software over six years.
The robotaxi deployment is expected to begin in late 2026. As part of this partnership, Uber also plans to invest millions of dollars directly into Lucid.
Lucid has been making product improvements to boost appeal in the competitive EV market. Starting July 31st, all Air sedans now come equipped with adapters for Tesla’s supercharger network.
The company’s 2026 Air Touring model received an EPA range boost to 431 miles thanks to denser battery technology. This represents over a 6% improvement from previous estimates.
Stock Structure Changes Proposed
In July, Lucid proposed a 1-for-10 reverse stock split to shareholders. If approved, this move would increase the stock price by 10 times while maintaining the same total investment value for shareholders.
The reverse split serves two main purposes for the company. First, it helps prevent potential delisting from the Nasdaq stock exchange where shares must maintain certain price levels.
Second, a higher share price typically makes the stock more attractive to institutional investors who often avoid penny stocks. Currently, 75.17% of Lucid shares are owned by institutional investors.
Analyst sentiment remains mixed on the stock. The consensus rating sits at “Hold” with an average price target of $2.68.
Two analysts rate the stock as a sell, eight have assigned hold ratings, and two recommend buying shares. Recent analyst activity includes Cantor Fitzgerald maintaining a neutral rating with a $3.00 price target.
Production Challenges Continue
The company faces ongoing manufacturing hurdles that have impacted guidance. Lucid recently reduced its full-year production forecast to 18,000-20,000 vehicles from a previous target of 20,000 vehicles.
Supply chain bottlenecks continue to hamper production capabilities. The company is also dealing with high manufacturing costs and operational inefficiencies.
Financial losses remain substantial for the EV maker. Net losses increased 8% to $855 million in the second quarter, reflecting the company’s ongoing struggle toward profitability.
The company maintains a market capitalization of $6.70 billion with a debt-to-equity ratio of 0.92. Current ratio stands at 2.58 with a quick ratio of 2.11, indicating reasonable liquidity positions.
Recent institutional activity shows mixed signals with some firms increasing positions while others have reduced holdings. Lazard Asset Management boosted its stake by over 1,200% during the second quarter.
