Lucid (LCID) Group Surges 14% on Bargain-Hunting

We recently published Monstrous Gains: 10 Stocks Leaving Wall Street in the Dust. Lucid Group, Inc. (NASDAQ:LCID) is one of the best performers on Friday.

Lucid Group climbed by 13.92 percent on Friday to finish at $18.41 apiece as investors resorted to bargain-hunting following six straight days of decline.

In recent news, Lucid Group, Inc. (NASDAQ:LCID) implemented a reverse stock split at a ratio of one-for-ten, meaning every 10 shares of the company were converted into one share. The split took effect last Tuesday, September 2.

Penny stock companies typically adopt a reverse stock split move to artificially boost their share price, make it more appealing to investors, reduce the number of outstanding shares, and sometimes, avoid the risk of getting delisted from the Nasdaq.

Under the Nasdaq rules, a listed company must maintain a minimum bid price requirement of $1 to avoid a potential delisting.

Without the reverse stock split, Lucid Group, Inc. (NASDAQ:LCID) is technically hovering the $1 level.

In recent news, Lucid Group, Inc. (NASDAQ:LCID) announced that it successfully raised $300 million in fresh funds from Uber Technologies Inc. (NYSE:UBER).

In line with the investment, both companies will deploy more than 20,000 Lucid vehicles over the next six years. The vehicles will be launched in a major city in the US next year and operated by Uber or its third-party fleet partners.

While we acknowledge the potential of LCID  as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.