Lucid Group Executes Reverse Stock Split Amidst Capital Strain and Competitive Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Capital Strain: Lucid Group disclosed in Q3 2025 that it only has enough cash to fund operations through the first half of 2027, indicating a critical risk in its expansion efforts that could hinder future production capabilities and market competitiveness.
- Reverse Split Impact: The company executed a 1-for-10 reverse stock split in August 2025, resulting in a stock price just above $10; however, without the split, it would be below $1, highlighting market concerns regarding its profitability and potential delisting risks.
- Production Capacity Growth: Lucid produced 18,378 electric vehicles in Q4 2025, a 104% year-over-year increase, yet this remains insignificant compared to larger competitors, underscoring its disadvantage in achieving necessary scale for competitive viability.
- Cautious Investor Sentiment: Due to ongoing losses and limited capital, analysts recommend that most investors avoid Lucid, suggesting that only those with a high-risk tolerance should consider holding the stock while carefully assessing potential risks.
Analyst Views on LCID
Wall Street analysts forecast LCID stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LCID is 18.82 USD with a low forecast of 10.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
9 Hold
2 Sell
Hold
Current: 10.050
Low
10.00
Averages
18.82
High
30.00
Current: 10.050
Low
10.00
Averages
18.82
High
30.00
About LCID
Lucid Group, Inc. is a technology company, which designs, engineers, and manufactures electric vehicles (EVs), EV powertrains, and battery systems in-house using its own equipment and factories. It sells vehicles directly to consumers through its retail sales network and through direct online sales. Its vehicles include Lucid Air and Lucid Gravity. Lucid Air is an advanced car, featuring powertrain technology. It offers 420 miles of the United States Environmental Protection Agency (EPA)-estimated range, with an 84-kWh battery pack. The Lucid Air Sapphire is the highest-performance version of the Lucid Air, boasting 1,234 horsepower from three motors, 427 miles of an EPA-estimated range (when equipped with standard wheel covers). The Lucid Gravity provides the interior space and practicality of a full-size SUV within the exterior footprint of a mid-size SUV. It provides space for up to seven adults. It has engineered the Lucid Gravity to deliver up to 450 miles of EPA-estimated range.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
