Lucid Group Shares Surge 36% After Announcing Uber Deal and Reverse Stock Split

Lucid Group (NASDAQ: LCID) saw its shares surge by 36.2%, closing at $3.12 on Thursday. This marks one of the electric vehicle (EV) company's strongest single-day rallies in 2024. The surge came after two major announcements that sparked significant investor enthusiasm.

Uber Partnership Drives Market Optimism

The primary catalyst was news that Lucid is entering a substantial partnership with Uber Technologies. Uber will commit $300 million to deploy 20,000 Lucid Gravity SUVs as autonomous robotaxis, with operations expected to begin in 2026. This deal opens up a potential new revenue stream for Lucid in the growing robotaxi market, positioning the company as a serious competitor in the evolving mobility sector.

Reverse Stock Split Aims to Attract Larger Investors

In addition to the Uber news, Lucid also announced plans for a 1-for-10 reverse stock split. This move is designed to elevate Lucid's share price, making the stock potentially more attractive to institutional investors and funds that require certain price thresholds for investments. Companies often use reverse splits to help their shares remain compliant with exchange requirements and appeal to a broader range of investors.

Lucid’s Stock Outpaces Rivals and the Market

While the broader stock market saw modest gains—with the Nasdaq Composite advancing 0.74% and the S&P 500 up 0.54%—Lucid’s rally was remarkable in comparison. Other EV makers had less dramatic moves: Tesla (TSLA) dipped 0.7% to $319.41, and Rivian (RIVN) rose by 4.1% to $12.90. This demonstrates that Lucid’s rise was primarily driven by company-specific news rather than broader sector momentum.

Trading Volume Hits Record Highs

Trading activity in Lucid shares soared, with 934.5 million shares changing hands—almost seven times above the 50-day average volume of roughly 137.7 million shares. The considerable jump in trading volume, paired with the stock’s continued distance from its 52-week high of $4.43, suggests that investors are reassessing Lucid’s future in light of these latest strategic moves.

Overall, the partnership with Uber and upcoming reverse stock split represent bold steps for Lucid as it seeks to strengthen its position in the competitive EV market.

This content is for informational purposes only and does not constitute financial advice.