Lucid Motors reaffirmed on social media the rationale behind the electric vehicle maker’s planned 1-for-10 reverse stock split, echoing earlier comments by the chief financial officer Taoufiq Boussaid, that the move “is not a coesmtic action.”
Responding to a user’s question on X about why the reverse split “is a good thing,” the company’s head of global communications, Nick Twork cited remarks made by Chief Financial Officer Taoufiq Boussaid during Lucid’s second-quarter earnings call earlier this month.
“This is not a cosmetic action; it is a deliberate and targeted measure to ensure Lucid’s equity remains accessible to a broader universe of long-only institutional investors,” Boussaid said on the call, according to Twork.
“It also aligns our share price with the strategic trajectory of the company as we move into the next chapter of scaling our operations and deepening our capital markets engagement,” Boussaid added at the time.
The Newark-based EV maker said earlier this week that the reverse stock split will take effect at 5:00 p.m. Eastern Time on August 29, with shares set to begin trading on a split-adjusted basis when markets reopen on September 2.
Lucid’s interim CEO Marc Winterhoff and CFO had already defended the reverse split before, saying the measure was designed to strengthen the company’s market position.
In a July interview, Winterhoff denied that the now-approved reverse stock split was due to delisting fears.
The company announced plans for the reverse split on July 17, minutes before unveiling a robotaxi deal with Uber and self-driving startup Nuro.
Lucid shareholders approved the measure on August 18, with nearly 98.5% of votes cast in favor, according to a regulatory filing this week.
