Lucid Group Inc (NASDAQ:LCID) shares were initially trading lower Friday morning after the company announced a 1-for-10 reverse stock split of its common stock, set to take effect after market close on August 29.
The stock is now trading flat after Fed Chair Jerome Powell struck a dovish tone at Jackson Hole, signaling that rising risks to jobs and slowing growth could prompt rate cuts, even as inflation pressures from tariffs appear temporary. Here’s what investors need to know.
What To Know: The stock will begin trading on a split-adjusted basis on September 2, under the existing ticker symbol LCID. This corporate action, approved by stockholders on August 18, will automatically convert every ten issued and outstanding shares into one share.
The primary impact of this decision is a significant reduction in the number of shares in circulation. The number of outstanding common shares will decrease from approximately 3.07 billion to roughly 307.3 million.
Concurrently, the total number of authorized shares of common stock will be reduced from 15 billion to 1.5 billion. The company has stated that the reverse split will not alter the par value of the common stock.
For stockholders, the process will be largely automatic. Those holding shares through a brokerage, bank or other nominee will see their positions adjusted without needing to take any action.
Price Action: According to data from Benzinga Pro, LCID shares are trading flat at $2.09 Friday morning. The stock has a 52-week high of $4.43 and a 52-week low of $1.93.
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How To Buy LCID Stock
By now you're likely curious about how to participate in the market for Lucid Group – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Lucid Group, which is trading at $2.08 as of publishing time, $100 would buy you 48.08 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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