Lucid Motors said on Monday its shareholders approved a 1-for-10 reverse stock split, a move the electric vehicle maker said it aims to lift the per-share trading price of its stock and increase access to more institutional investors.
The announcement of the planned reverse split was first disclosed in mid-July, minutes before Lucid revealed a deal with Uber and Nuro.
Under that agreement, Uber will invest $300,000 and acquire at least 20,000 Gravity vehicles over six years to deploy as robotaxis using Nuro’s autonomous technology, with operations set to begin in “a major US city” in late 2026.
Despite the reverse stock split, Lucid shares soared over 60% immediately after the Uber announcement, sending the stock price to $3.69.
However, the deal failed to convince investors and Wall Street analysts.
Concerns over the reverse stock split and second-quarter earnings results drove the stock down 40% from its July 17 peak to just above the all-time low of $1.93 reached last November.
The reverse stock split decision was taken at a special shareholder meeting on Monday convened to vote on the measure.
Lucid confirmed the approval in a series of posts on X by Nick Twork, the company’s head of global communications, who wrote: “The RS [reverse stock split] has passed based on a preliminary tally.”
He added that an 8-K filing with the US Securities and Exchange Commission would follow “in due course.”
The split, scheduled to take effect in early September, will increase Lucid’s share price tenfold without altering its market capitalisation.
The company amended its SEC proxy statement on August 10 to clarify that the total number of authorised shares will also be reduced in proportion to the split. Its initial July 28 filing had incorrectly stated that the figure would remain unchanged at 15 billion.
Lucid’s board said in its proxy materials 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.
As reported on Monday, a new drone flyover of Lucid Motors’ plant in Casa Grande, Arizona, showed about 1,000 Gravity SUVs parked across staging lots.
The images reinforced signs that the Saudi-backed carmaker is ramping up production of its second model, as announced by Nick Twork last week.
To meet the lower end of its recently trimmed production target, Lucid must produce 11,325 vehicles in the second half of the year and 13,325 to meet the high end of the target.
Previously at “approximately 20,000 vehicles,” Lucid cut its guidance to a range of 18,000-20,000 units.
