Electric vehicle manufacturer Lucid (NASDAQ: LCID) announced a 1-for-10 reverse stock split, effective August 29, with shares set to trade on a split-adjusted basis beginning September 2.
The move reduces authorized shares from 15 billion to 1.5 billion, without changing par value. Fractional shares will not be issued; instead, shareholders will receive cash.
Following the announcement, the market reacted negatively, with LCID shares plunging. Lucid ended the last session at $1.98, down over 4% for the day, and nearly 35% year-to-date.
Profiting from Lucid stock split
Although the stock slumped on the news, some investors may still look to capitalize on the development. To explore potential opportunities, Finbold turned to OpenAI’s ChatGPT-5 model for insights.
ChatGPT-5 noted that the reverse split will lift Lucid’s share price from around $2 to $20 by consolidating shares without changing investor value. While the higher price may influence market psychology, reverse splits often trigger short-lived rallies that fade.
For traders, the AI model suggested the best opportunity may come before the split, as momentum could drive short-term gains.
However, holding after the adjustment carries risks, as the market may quickly shift focus back to Lucid’s financial challenges.
Lucid fundamentals
At the same time, ChatGPT-5 emphasized that Lucid’s long-term outlook depends on execution rather than the split itself.
To this end, key fundamentals likely to affect the stock include the launch of the Gravity SUV, partnerships with Uber and Nuro, and continued backing from Saudi Arabia’s Public Investment Fund. Additionally, strong delivery on these fronts could also make the higher-priced stock more attractive to institutional investors.
According to ChatGPT-5, maximizing returns requires two approaches: traders can exploit pre-split momentum, while long-term investors must weigh whether Lucid’s partnerships and capital support can translate into sustainable growth.
Without progress on production and profitability, the model warned that the stock may struggle to hold post-split gains.
Featured image via Shutterstock.
