Lucid Group (NASDAQ:LCID) stock at $18.41? No, the company didn’t suddenly triple EV sales overnight. Instead, the price change stems from a 1-for-10 reverse stock split the EV maker executed on September 2, aimed at attracting more institutional investors. The split reduced the share count from roughly 3.07 billion to about 307.3 million and cut authorized common shares from 15 billion to 1.5 billion.
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Reverse stock splits are often viewed as a red flag signaling a struggling company, and LCID shares drifted lower in the aftermath of the announcement. By Friday, however, the stock had bounced back, lifted by far more investor-friendly news.
The company confirmed it had closed a $300 million strategic investment from Uber, first announced on July 17. The capital will fund the development of Lucid’s next-gen premium robotaxi, to be built at its Arizona plant and used exclusively on Uber’s platform. The project combines Lucid’s Gravity vehicle architecture with Nuro’s Level 4 autonomous driving system and Uber’s fleet management capabilities. Over six years, the companies intend to roll out more than 20,000 Lucid Gravity electric SUVs equipped with Nuro’s technology, starting in late 2026 in a major U.S. city yet to be named before expanding globally.
Nor does the growth story stop there. On its Q2 earnings call, management reiterated that its Midsize Platform remains on schedule to begin production in late 2026, with plans to launch the midsize vehicle at a starting price below $50,000.
Cantor analyst Andres Sheppard sees both developments as material catalysts and continues to believe the midsize vehicle will help Lucid scale production at higher volumes, benefit from a lower price point, and ultimately improve gross margins.
Sheppard remains a fan of Lucid’s vehicles, believing they deliver superior battery efficiency, longer driving range, stronger performance, more interior space, and faster charging compared to other EVs. As production scales, the analyst anticipates the Gravity will significantly lift customer demand, with management projecting its TAM (total addressable market) to be roughly six times larger than that of the Lucid Air sedan.
Yet, even with these long-term drivers, Sheppard isn’t ready to turn bullish just yet.
“Overall,” the analyst summed up, “we remain neutral due to persistent high negative gross margin, additional capital needs, supply constraints, a worsening macro environment, and tariff uncertainty.”
Sheppard’s Neutral rating is accompanied by a $20 price target, implying the stock will gain ~9% over the one-year timeframe. (To watch Sheppard’s track record, click here)
Most of Sheppard’s colleagues are also on the LCID fence; based on 9 Holds, 2 Buys and 1 Sell, the stock claims a Hold consensus rating. However, there are nice gains projected here; at $27.73, the average price target makes room for 12-month returns of ~51%. (See LCID stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.