Shares of electric vehicle maker Lucid Motors fell 2.3% in early trading on Wednesday to $2.08 — just 15 cents above the record low reached late last year.
The stock has plunged nearly 97% from an all-time high of $64.86 in November 2021.
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.
Rawlinson shifted to the role of strategic technical adviser to the chairman of the board and has spoken publicly only rarely since then.
Since then, former chief operating officer Marc Winterhoff has served as interim CEO.
At the time of the transition, the board said it had “initiated a search to identify Lucid’s next Chief Executive Officer with the support of a leading executive search firm.
Between October 2023 and May 2025, a total of twelve top executives left the company.
Lucid shares are down 31% year to date and have lost 43.5% since peaking at $3.69 on July 17, when the brand unveiled two major announcements: a plan to execute a 1-for-10 reverse stock split and a $300 million investment from Uber, which also agreed to acquire at least 20,000 Gravity vehicles over the next six years.
The latest decline follows a special shareholder meeting where investors approved the reverse stock split, expected to be executed in early September.
Lucid said the move is intended to raise the per-share trading price and increase access to institutional investors. The interim CEO Winterhoff echoed those words in several interviews aired in July.
However, investors are concerned that if the downtrend continues, the shares could risk breaching the Nasdaq’s minimum bid threshold of $1.
Nasdaq rules require listed companies to maintain a minimum bid price of $1.00 per share.
If a company’s stock closes below that level for 30 consecutive business days, it receives a deficiency notice and typically has 180 days to regain compliance by trading at or above $1.00 for at least 10 straight sessions, or risk delisting.
Investor concerns over the reverse split and leadership upheaval have been compounded by bearish views from several Wall Street analysts following second-quarter earnings.
Earlier this month, Bank of America’s John Murphy reaffirmed a $1.00 price target, saying Lucid’s results missed both the firm’s and consensus estimates on revenue, adjusted EBITDA, and gross margin.
Needham’s Vikram Bagri noted that while demand trends for Lucid’s second model were “encouraging,” production targets had been moderated, profitability remained elusive, and cash burn was elevated amid “persistent margin pressures.”
On the same day, the company cut its annual production forecast from “approximately 20,000” vehicles to between 18,000 and 20,000.
Cantor Fitzgerald analyst Andres Sheppard reiterated a Neutral rating and $3.00 price target, projecting deliveries of 6,064 Gravity vehicles in 2025 after production ramps up in the second half of next year.
On the bullish side, Benchmark’s Mickey Legg reaffirmed a $7.00 price target, remaining among the most optimistic analysts covering the stock.
Lucid’s finances remain closely tied to Saudi Arabia’s Public Investment Fund.
The sovereign wealth fund first committed $1 billion in 2018 to finance development of the Air sedan, construction of Lucid’s Casa Grande plant in Arizona, and its North American retail launch. In August 2024, Lucid announced PIF would inject up to $1.5 billion in fresh capital.
Two months later, in October, Lucid 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.
