Troubled EV maker Lucid Motors said on Thursday that it has filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) as it seeks approval for a reverse stock split to comply with Nasdaq listing rules.
The 1-for-10 reverse stock split must be authorized by the company’s Board of Directors following approval by stockholders at a special meeting.
As of the end of March, Lucid reported an accumulated deficit of $13.3 billion, according to its most recent filing with the U.S. Securities and Exchange Commission.
Publicly listed companies should trade above the $1.00 threshold to avoid being delisted, according to Nasdaq listing rules. Lucid shares hit an all time low last November at $1.93.
Shares of Lucid Motors soared 19% in their Nasdaq debut in July 2021 after completing a merger with the special purpose acquisition company (SPAC) Churchill Capital Corp IV.
Lucid said in a statement it believes the reverse stock split will “allow the Company’s common stock to be more attractive to a broader range of investors and other market participants.”
The California-based EV maker delivered 2,630 Air sedans between April and June — marking a 9.9% increase year over year — and five units of its Gravity SUV.
In Europe, Lucid registered 27 vehicles in June across its European markets in June.
Across Germany, Norway, Switzerland, and the Netherlands, registrations rose 22.7% from a year earlier but were slightly below the 28 units recorded in May, based on official national data and EU-EVs figures.
Benchmark said last week it remains confident in Lucid Motors’ path to scale following a meeting with the company’s chief financial officer, Taoufiq Boussaid.
Benchmark analyst Mickey Leg reiterated a ‘Buy’ rating and $5.00 price target on shares of the Newark-based EV maker, implying an upside potential of 119%.
Lucid produced 3,863 vehicles in the second quarter, driven in part by the ramp-up of its Gravity SUV. The output marked a sequential increase of 74.6% and an 83.1% jump from a year earlier.
Based on its reported first-half production of 6,675 vehicles — combining 2,812 units in Q1 and 3,863 in Q2 — the company would need to manufacture 13,325 additional units in the second half to reach its guidance, implying a near-doubling of output in H2.
In September 2018, PIF committed $1 billion to Lucid to help finance the development of the Air sedan, construction of the Casa Grande factory in Arizona, and the launch of retail operations in North America.
In August 2024, Lucid announced PIF would inject up to $1.5 billion in fresh capital.
Two months later, in October, the company warned of a larger-than-expected third-quarter loss and launched a public offering of more than 262 million shares — triggering a 12% drop in after-hours trading.
