Reported about 11 hours ago
Lucid Motors has filed for a reverse stock split, aiming to consolidate its shares from a ratio of 10 to 1. While such splits often indicate financial distress, Lucid isn't in immediate danger of delisting and hopes this strategy will attract institutional investors by increasing the stock price. Analysts view reverse splits negatively, linking them to companies in trouble, yet Lucid maintains liquidity through 2026, underscoring its position as a high-risk, high-reward investment. The decision may not be a sign of desperation but part of a broader strategy to stabilize and enhance the company's market appeal.
Source: YAHOO