Why Lucid Group Stock Sank This Week
Shares of Lucid Group (NASDAQ: LCID) are trading lower this week, down 17.1% as of 3:37 p.m. ET on Friday. The drop comes as the S 500 lost 2.4%, and the Nasdaq-100 lost 2.2%.
Lucid has announced plans to initiate a reverse stock split, a move often reserved for companies in danger of delisting from the Nasdaq or NYSE. Its stock is also taking a hit from today's larger macro news.
Though it still needs to be approved by shareholders, Lucid announced earlier this week that it intends to initiate a 10-for-1 reverse stock split. While this won't directly affect the underlying value of investors' positions, it carries negative connotations.
Source Fool.com
