Lucid Motors said on Thursday that its planned 1-for-10 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.
The move will reduce the number of issued and outstanding shares of common stock from about 3.07 billion to 307.3 million, subject to adjustment for fractional shares.
The number of authorised shares will be cut from 15 billion to 1.5 billion, though the par value of the stock will naturally remain unchanged.
Shares of electric vehicle maker closed flat on Thursday at $2.09 — just 16 cents above the record low reached last November.
The stock has plunged nearly 97% from an all-time high of $64.86 in November 2021.
The decision follows shareholder approval at a special meeting on Monday.
Lucid’s board said in its proxy materials earlier this month that the measure was intended “to increase the per share trading price of the Company’s common stock” and to broaden its eligibility among institutions restricted from investing in low-priced shares.
Interim chief executive Marc Winterhoff has rejected suggestions in recent interviews that the split was motivated by concerns over potential delisting if the stock were to fall below Nasdaq’s $1 minimum bid requirement.
Lucid had first disclosed plans for the reverse split in mid-July, minutes before unveiling a deal with Uber and robotics company Nuro.
Under that agreement, Uber committed to invest $300 million and to acquire at least 20,000 Gravity sport utility vehicles over six years.
The vehicles will be used for deployment as robotaxis using Nuro’s autonomous technology, with operations expected to begin in a major US city in late 2026.
Shares surged more than 60% after the Uber announcement, reaching $3.69, but quickly lost momentum as concerns over the reverse split and weak second-quarter results resurfaced.
The stock has since fallen 40% from its July 17 peak, trading just above last year’s all-time low of $1.93.
Over the past few years, Lucid missed several sales targets, faced softer-than-expected demand for its premium EVs and a wave of executive departures that culminated in CEO and chief technology officer Peter Rawlinson being removed from the top job in February.
