Reverse Split

RichMalden · 2025-08-12T07:31:04-0500

The voting is meaningless as the Saudi PIF owns more than 50% so whatever they say goes.

People saying it hurts their ability to buy, it doesn't matter at our level if you buy 10 shares at $20 or 100 shares at $2. But Institutional investors aren't allowed to buy if a stock is below certain prices. You want them to be able to trade the stock if you want support for it.

In a pure mathematical sense there's zero difference before and after a reverse split but there will be some, hopefully slight, downward pressure before and after the split because a reverse split is generally looked at as a sign of a company struggling.

Dilution after the split which will happen with further infusions of cash which absolutely will still be necessary is not effected. Dilution is a factor of overall market capitalization which is roughly the same.

new owner · 2025-08-12T07:39:48-0500

A dynamic CEO and making more Gravity while the demand is strong is what the stock needs

merveille07 · 2025-08-12T07:51:29-0500

NoseyReporter said:
The real fear with an RS is continued dilution. Which in reality, lets be honest, is going to happen. They need to continue raising till mid size becomes successful. Which is going to include all sorts of costs for tooling and such.

I don't buy the minimum price required for institutional investors story. There are more than enough BIG institutional investors who have purchased LCID shares sub 5. The potential true narrative is the ability to raise capital at a higher share price, then dilute it down. Its a lot easier to execute an RS to $20, then dilute to whatever, vs try to raise capital and dilute at a share price of $2. Let's rephrase the minimum price required for intuitional investors. What they really mean is they can't keep dilution because eventually none the price will be driven so low that institutional investors won't touch the stock.

Frankly if Lucid had something in its pocket that it could have done to raise share price, they would have done it. It doesn't benefit them to have a low share price, because they still need to raise capital. They've run out of cards to play so its RS time.

Finally, I was probably the first to say it, and I'll continue to say it. The 20K target makes no freaking sense. This new revised 18-20K target, still makes no freaking sense. I'm calling it here, watch out for a RS, then in Q3 a downward revision of the target. If Lucid hit 15k for the year, I'd probably be satisfied.

You nailed it. This is why it's bad for retail investors. The only reason Lucid is doing it is for giving themselves room for dilution. The only way it's good is if price keeps increasing after RS which I am 90% sure won't happen. Retail investors who usually don't have a lot of money to play might not be able to buy even if the stock price fall after RS (they share loose value and they can't average down because of the price). Anyway, no or yes vote means nothing; only what the PIF want matter. Now if Lucid can start delivering car constantly, all these will be history. Let's hope they do.

Genghis · 2025-08-12T07:55:41-0500

NoseyReporter said:
The real fear with an RS is continued dilution. Which in reality, lets be honest, is going to happen. They need to continue raising till mid size becomes successful. Which is going to include all sorts of costs for tooling and such.

100% agree with this which will hurt existing shareholders after the RS and draws more interest from larger short selling institutions.

I’m with you on how they are going to hit the 18-20k numbers. Doesn’t make any sense to me at the current monthly rate. I expected a big downward revision like they usually do after each earnings report so was a bit surprised when they didn’t

Batteryman · 2025-08-12T08:06:56-0500

Babyrocko1908 said:
Voted no. While I understand why Lucid feels they need to do it, it hurts retail investors. I've worked hard accumulating my shares since the early CCIV days, shares will cost 10x as much after the split. That hurts us little guys.

They want to flush out retail traders, they are the main cause of volatility. Options trades will cost X10 per contract. This will reduce option buying by retail traders giving stability.

And allow for more institutions to buy.

You can still buy fractional shares, but probably not options. I’m all for that. We need to flush out traders.

RichMalden · 2025-08-12T08:07:53-0500

Babyrocko1908 said:
I don't want 100, I want 1,000 like I've been buying.

Don't stop there, why not wish you could buy 1 million shares at .002 per share! Push for a 1 to 1,000 split. What is the hang up of being able to say you own thousands of share rather than hundreds?!?! I'd be far happier getting 10 shares of Berkshire Hathaway Class A stock rather than 1,000,000 shares of Lucid.

NoseyReporter · 2025-08-12T08:08:44-0500

Genghis said:
100% agree with this which will hurt existing shareholders after the RS and draws more interest from larger short selling institutions.

I’m with you on how they are going to hit the 18-20k numbers. Doesn’t make any sense to me at the current monthly rate. I expected a big downward revision like they usually do after each earnings report so was a bit surprised when they didn’t

It really doesn't make any sense. They are lying through their teeth here.

From the outside looking in, operationally, the company still seems like a mess. Every. Single. Time. It's a some kind of supply chain issue. You aren't even building these cars at some crazy scale!

450 Gravity Dream editions. You're telling me manufacturing couldn't forecast out that you needed at least 450 HUDs by the start of 2025 so that you could produce 450 Gravities with HUDs? How much planning does it take, to be ready to make 450 units of anything?

Then you split the tech package because you don't have enough HUDs for the GGTs and then what you cant produce a Gravity with a power package? Why even split the tech package then? That's hilariously pointless.

Batteryman · 2025-08-12T08:10:10-0500

merveille07 said:
You nailed it. This is why it's bad for retail investors. The only reason Lucid is doing it is for giving themselves room for dilution. The only way it's good is if price keeps increasing after RS which I am 90% sure won't happen. Retail investors who usually don't have a lot of money to play might not be able to buy even if the stock price fall after RS (they share loose value and they can't average down because of the price). Anyway, no or yes vote means nothing; only what the PIF want matter. Now if Lucid can start delivering car constantly, all these will be history. Let's hope they do.

If they don’t dilute to raise more money for midsize, they go bankrupt. Take your pick.

Ktw13 · 2025-08-12T08:14:23-0500

Babyrocko1908 said:
I stand by what I wrote. It's important for ME, and for ME, that's all that matters! I'd rather have my 1,000 shares instead of 100.

Hmm, I remember when I originally started investing in Dogecoin back in 2014-2015ish. My cash out was lucrative (because I kept accumulating when it was worth 100ths of of a penny) when it peaked at $0.682 cents. So yeah, I can see the benefit of accumulating the right penny stocks. Are you following me yet?

You keep referring to "value" I want accumulation of the number shares I own. And yes, retail investors are hurt because the amount of shares that I can continue to accumulate is diminished with this split because they will cost me 10x more. So basic math, 10 shares now cost $21.90, those same 10 shares will cost $211.90 after the split. Recall, I'm a retail investor.

Understood now and I understood this before. Which is why I understand Lucid's reasoning for doing it. Doesn't mean I have to like it and voted accordingly.

I just want to say, 1% rise in stock price at $2 is $0.02 but at $20 is $0.2.

You get 1/10 the stock after RS, but every share you have will be working 10 times harder.

Blue Lectroid · 2025-08-12T09:22:24-0500

Babyrocko1908 said:
Voted no. While I understand why Lucid feels they need to do it, it hurts retail investors. I've worked hard accumulating my shares since the early CCIV days, shares will cost 10x as much after the split. That hurts us little guys.

I am confused by this. Even with a 10:1 RS, you gotta be real little to not be able to buy one share. We invest in dollars, not shares, so I’m not sure how little guys are hurt by the split…

segbrk · 2025-08-12T09:22:56-0500

NoseyReporter said:
450 Gravity Dream editions. You're telling me manufacturing couldn't forecast out that you needed at least 450 HUDs by the start of 2025 so that you could produce 450 Gravities with HUDs? How much planning does it take, to be ready to make 450 units of anything?

We're getting off topic here now, but: If you're ready to believe Lucid is misrepresenting or neglecting their logistics, is it any harder to believe one of the dozens of suppliers involved who was under contract to deliver some number of components was misrepresenting or neglecting their logistics and didn't actually have that many of that component ready to ship? Or that due to the chaos of 2025, some supplier was no longer able to ship as agreed?

Blue Lectroid · 2025-08-12T09:26:29-0500

Babyrocko1908 said:
Now here's a question that I do have because I don't know enough about this but could Lucid do something else other than reverse splitting to avoid a potential delisting?

Yeah, release Earth, ramp Gravity production and become profitable…which would lead to a rapidly rising stock price and avoid delisting. The preceding said with tongue firmly planted in cheek…

NoseyReporter · 2025-08-12T09:28:20-0500

segbrk said:
We're getting off topic here now, but: If you're ready to believe Lucid is misrepresenting or neglecting their logistics, is it any harder to believe one of the dozens of suppliers involved who was under contract to deliver some number of components was misrepresenting or neglecting their logistics and didn't actually have that many of that component ready to ship? Or that due to the chaos of 2025, some supplier was no longer able to ship as agreed?

Yes it is off topic. I apologize. I have more to say but I don't wanna trigger any of the admins and get myself in trouble.

Babyrocko1908 · 2025-08-12T09:33:49-0500

Blue Lectroid said:
I am confused by this. Even with a 10:1 RS, you gotta be real little to not be able to buy one share. We invest in dollars, not shares, so I’m not sure how little guys are hurt by the split…

I've addressed my reasoning here at least half a dozen times!

Blue Lectroid · 2025-08-12T09:44:35-0500

Babyrocko1908 said:
I've addressed my reasoning here at least half a dozen times!

Yup and, respectfully, your answers remain beyond “reason.” I get it. You like a lot of shares. All good by me. It’s not rational or reasonable in the literal sense of those words, but I get it. I voted FOR the RS, even though it’s kinda fun personally to talk about my tens of thousands of shares, but from my business training and financial management background, the rational and reasonable thing for LCID to do is to do the RS.

Babyrocko1908 · 2025-08-12T09:52:14-0500

Blue Lectroid said:
Yup and, respectfully, your answers remain beyond “reason.” I get it. You like a lot of shares. All good by me. It’s not rational or reasonable in the literal sense of those words, but I get it. I voted FOR the RS, even though it’s kinda fun personally to talk about my tens of thousands of shares, but from my business training and financial management background, the rational and reasonable thing for LCID to do is to do the RS.

Okay.

Ktw13 · 2025-08-12T10:11:45-0500

Babyrocko1908 said:
I've addressed my reasoning here at least half a dozen times!

When company value doubles, you double your money and RS or not doesn't change that fact.

Crypto is different.

tonybot · 2025-08-12T10:18:47-0500

NoseyReporter said:
Yes it is off topic. I apologize. I have more to say but I don't wanna trigger any of the admins and get myself in trouble.

I would love to hear your thoughts. I think I could benefit from your perspective. If you don’t want to post, would you mind sending a DM or starting a thread in the off-topic section?

NoseyReporter · 2025-08-12T11:45:23-0500

tonybot said:
I would love to hear your thoughts. I think I could benefit from your perspective. If you don’t want to post, would you mind sending a DM or starting a thread in the off-topic section?

My preference is to post in public, so others can weigh in. I'm just one mind, with random thoughts.

Pragmatic · 2025-08-12T13:43:50-0500

Actually the current low price is hurting small investors. Brokers typically make money on the spread between the buyer and seller. On small lots the can be several cents per share. After the reverse split the spread will remain several cents per share but will be a much smaller percent of the transaction price.

It's one of the reasons brokers fought against the movement to decimal pricing at the end of the last century.

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