Wall Street’s Most Anticipated Reverse Stock Split of 2025 Has Arrived
September 2, 2025
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The stock divisions provide a means of public companies to control the stock price and account, and the number of shares due in the same factor becomes.
A few companies that enacted in reverse stocks have become success stories.
Although the latest stock division stock in Wall Street may seem to have a competitive advantage, the problems of the supply chain and the overall winds have stopped its efforts to expand its operations.
For the best part of the past three years, the development of artificial intelligence (AI) was the most innovative stock market. But artificial intelligence is not the only trend responsible for raising the tide in Wall Street. The investor’s euphoria has also played the division of shares in prominent companies also a major role in sending major stock indicators into new horizons.
A Division It is a tool for circulating companies at their disposal to control their share price superficially and the number of shares due in the same factor. These changes are superficial in the sense that they do not change the maximum of the company’s market or in any way affect its operational performance.
Although the division of shares can move the share of the public company to the top or down, there is a wide gap in investor morale between two types of divisions.
At the other end of the spectrum, the opposite stock divisions are found, which are usually frustrated by the investment community. This type of division is designed to increase the company’s share price, and the purpose of avoiding removing the main stock exchange is often.
Most reverse divisions are performed by relatively unknown companies – but this is not always the case. The most expected reverse stocks for 2025, the electric car maker (EV) A clear group(Nasdaq: LCID)Today, September 2, before the opening bell, there is a question that has an unaccounted attention in Wall Street.
Reverse stock divisions are usually avoided by investors related to the basic operational performance of their entrepreneurship. Companies with a declining share price often struggle with the point of view of operation and money loss. But in rare cases, the shares of the division of reverse stocks can be real jewels.
It can be said that the most successful reverse stocks at all times are the online travel company Booking property(Nasdaq: bkng). Shortly after the Dot-Com bubble explosion, the reservation, which was then known as Priceline, was backward. Thanks to the price of the arrow, which is dangerous to approximately one dollar, which is the minimum for continued listing Nasdak The exchange has been exchanged, as the reservation divided the reverse against 6 in June 2023. Since its division, the company’s shares have increased by more than 22,000 %!
In September 2024, the satellite operator-Radio Sirius XM Holdings(Nasdak: Siri) I completed the opposite division of 1 against 10. Sirius XM’s Split did not have a big relationship with concerns about the survival listed on the Nasdak Stock Exchange. Instead, it was intended to increase the share price to return to the radar of institutional investors who might be careful not to buy shares of $ 5. Sirius XM is still one of the few legal monopolies in America.
There is a promise that Lawsid can join this group of elite prominent and profitable companies that have a reverse division.
On August 21, the company announced plans to complete the reverse division against 10, which will enhance the north of 3 billion distinct shares to about 307.3 million. Upon completion, the Lucid shares will increase from $ 1.98 per share, as it was closed on August 29 to $ 19.80 per share when trading on September 2.
On paper, Lucid appears to have a clear runway to become the luxury EV manufacturer. with Timing Focusing on the production of sedan 3 cars more suitable for costs, instead of the Sudure S model, the Lucid’s Air Sedan gives the opportunity to intervene as a leader in the luxury EV category.
Unfortunately, the opposite winds of escalation have clear shares, as the shares have decreased by almost 97 % since they reached the highest levels ever in early 2021.
Photo source: Lucid collection.
Although the stock price near $ 20 may encourage institutional purchase in the short term, the higher nominal price will not fix some of the total and total problems of the company that suffers from clarity.
Looking at the biggest picture, consumer enthusiasm faded when it comes to EV ownership. Lack of infrastructure, wide shipping, along with President Donald Trump’s “Grand and Beautiful Bill” Budget Budget, gets rid of the regulatory credits of cars by the end of this month, slowed the demand for the next generation of EVS.
These ongoing infrastructure challenges, along with the problems of the supply chain (some of which arose from the Covid-19s), have led to a decrease or dismantling of its production forecast on an anniversary basis apparently.
When Lucid became a public company, it is estimated that 90,000 units will be produced by 2024. But the company’s expectations for 2024 decreased to only 9000 EVS. For 2025, the Lucid Group reduced its production forecasts to between 18,000 and 20,000 EVS, which decreased from pre -expectations from 20,000 vehicles. In other words, no indication is presented that it can expand its operations successfully or achieve noble production goals.
Lucid Group has also delayed its second model, The Gravity Suv, to the market. It is first scheduled for the first time in 2024, delivery processes did not start from gravity until the last half of April 2025. But with quality control problems and quality monitoring that hinders gravity, scaling production demonstrated a challenge.
Another somewhat clear problem for Lucid is that it has not shown that a sustainable operating model. To be fair, very few EV makers were able to pay to repeated profitability, as most old car manufacturers also collected billions of dollars from electric car sectors. But Lucid is not close to earning money on EVS – and this is big problem.
Lucid Group’s silver lining is the closure of June with more than $ 2.8 billion of joint cash, monetary rewards, and short -term investments, and has a public investment fund in the Kingdom of Saudi Arabia as its largest financial supporter. There are no immediate problems with the sheet here. However, he lost more than $ 1.5 billion during the first six months of 2025, burned through $ 1.26 billion in cash from its operations in half a year, and lost 13.8 billion dollars since its inception.
A new chapter begins today for the Lucid Group. The only question is: Will the last chapter of the company be, or the beginning of an amazing transformation story?
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Sean Williams He has positions in Sirius XM. Motley Fool has positions in reservation and Tesla. Motley Fool Nasdaq recommends. Motley deception has Disclosure.
