Motley Fool – Tue Jul 29, 4:35PM CDT
Lucid Group(NASDAQ: LCID) dropped 8.24% to close at $2.56 on Tuesday, with the sharp decline attributed to renewed investor concerns over the electric vehicle (EV) maker’s recently filed 1-for-10 reverse stock split proposal. The decline appears sentiment-driven, reflecting lingering skepticism over Lucid’s capital structure and long-term path to profitability.
Lucid’s decline stood out against broader market weakness, as the S&P 500 fell 0.3% and the Nasdaq Composite dropped 0.4%. The stock also led EV peers lower, with Tesla(NASDAQ: TSLA) declining 1.4% to $321.20 and Rivian Automotive(NASDAQ: RIVN) falling 5.2% to $13.06. The outsized decline underscores increased scrutiny on smaller-cap, pre-profit EV manufacturers amid challenging market conditions for the sector.
Trading volume of 118 million shares came in below both the 65-day average of 148 million shares. Trading at $2.56, Lucid sits 42% below its 52-week high of $4.43. The decline highlights continued pressure on the premium EV maker’s valuation amid ongoing concerns about the proposed reverse stock split and dilution fears.
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