Key Points
Lucid stock fell as the company announced a 10-for-1 reverse stock split.
Broader market headwinds, including fresh tariffs and weaker-than-expected job data, added to the pressure on Lucid shares.
With ongoing losses and a steep climb to profitability, Lucid faces mounting operational and financial challenges.
10 stocks we like better than Lucid Group ›
Shares of Lucid Group (NASDAQ: LCID) are trading lower this week, down 17.1% as of 3:37 p.m. ET on Friday. The drop comes as the S&P 500 lost 2.4%, and the Nasdaq-100 lost 2.2%.
Lucid has announced plans to initiate a reverse stock split, a move often reserved for companies in danger of delisting from the Nasdaq or NYSE. Its stock is also taking a hit from today’s larger macro news.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Lucid wants to boost its stock price
Though it still needs to be approved by shareholders, Lucid announced earlier this week that it intends to initiate a 10-for-1 reverse stock split. While this won’t directly affect the underlying value of investors’ positions, it carries negative connotations.
A reverse stock split is most often used to keep a share price above the $1 minimum that the New York Stock Exchange and Nasdaq require. Lucid says that there is no danger of the stock falling under $1 and that this is in an attempt to make the stock more attractive to institutions, which sometimes have minimum prices for stocks they will buy.
Tariffs and weak job data spook markets
President Trump set new rates for his “reciprocal” tariffs on dozens of countries with a fresh executive order. This comes as the latest job data shows a slowdown in hiring, indicating the economic picture might be less rosy than hoped. The U.S. added just 73,000 jobs in July, well below the expected 100,000.
Image source: Getty Images.
Lucid has a long way to go
Lucid is at a critical juncture. It must grow sales and reduce costs significantly to show it can reach profitability, which it is still far from doing. I think too many hurdles lie in its way, and I would avoid Lucid stock.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $625,254!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,090,257!*
Now, it’s worth noting Stock Advisor’s total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
