Lucid Soars 14% — Was the Reverse Stock Split Just What the EV Maker Needed?

Lucid Soars 14% — Was the Reverse Stock Split Just What the EV Maker Needed?

Key Points Reverse stock splits, unlike forward splits, are often seen as red flags, signaling financial distress rather than growth confidence. Lucid Group’s (LCID) 1-for-10 reverse split on Sept. 2 boosted its share price but failed to address core issues like production shortfalls and losses. The market’s 14% rally post-split may reflect misread optimism, as fundamental challenges persist. Nvidia made early investors rich, but there is a …