Form 4: Lucid Group Executive's Tax-Related Stock Disposition

Lucid Group's SVP Finance & Accounting, Gagan Dhingra, reported a tax-related disposition of 8,262 shares following a reverse stock split.

Summary

• Gagan Dhingra, SVP Finance & Accounting and Principal Accounting Officer of Lucid Group, Inc. (LCID), reported a transaction on September 5, 2025.
• 8,262 shares of Class A Common Stock were disposed of by the Issuer to satisfy tax withholding and remittance obligations.
• This disposition was in connection with the settlement of performance-based restricted stock units (PSUs) and the vesting of time-based restricted stock units (RSUs).
• The transaction occurred at a price of $16.16 per share.
• Following this transaction, Mr. Dhingra beneficially owns 135,586 shares of Class A Common Stock.
• All share and dollar amounts reported reflect the company's 1-for-10 reverse stock split that was effective on August 29, 2025.
• The transaction was made pursuant to a contract, instruction, or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Sentiment

Score: 5

Explanation: This is a routine, non-discretionary transaction for tax purposes related to executive compensation, not indicative of positive or negative company performance or executive sentiment.

Positives

• The transaction represents the vesting of performance-based and time-based restricted stock units, indicating compensation for the executive.
• The transaction was pre-planned under a Rule 10b5-1(c) plan, suggesting a structured approach to equity compensation and tax management.

Negatives

• A reduction in the executive's direct shareholding, although for tax purposes, reduces their immediate beneficial ownership.

Risks

• NA

Future Outlook

NA

Management Comments

• Mr. Dhingra serves as the Issuer's Principal Accounting Officer.

Industry Context

This is a routine executive compensation and tax compliance disclosure, common across publicly traded companies, reflecting standard practices for vesting restricted stock units and managing associated tax liabilities. The reverse stock split is a company-specific event that impacts the reported share and dollar amounts.

Comparison to Industry Standards

• The withholding of shares for tax obligations upon the vesting of restricted stock units is a standard practice in executive compensation across industries, aligning with typical equity incentive plan structures.
• The use of a Rule 10b5-1(c) plan for such transactions is also a common corporate governance practice to ensure compliance with insider trading regulations.

Corporate Governance

Legal Proceedings

• NA

Related Party Transactions

• The transaction involves the company withholding shares from an executive to cover tax obligations related to equity compensation, which is a standard practice and not typically classified as an unusual related-party transaction requiring special disclosure beyond the Form 4.

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine, non-discretionary transaction for tax purposes related to executive compensation. It does not reflect a voluntary sale by the executive.
• Employees: No direct impact beyond the executive involved in the transaction.

Next Steps

• NA

Key Dates

Recommendation

This Form 4 details a routine, non-discretionary disposition of shares by an executive to cover tax obligations arising from the vesting of restricted stock units. Such transactions are common and pre-planned, offering no new material information regarding the company's operational performance or future prospects that would warrant a change in investment recommendation. The reverse stock split is a corporate action already known to the market.

Keywords

Lucid Group, LCID, Gagan Dhingra, Form 4, SEC filing, stock transaction, executive compensation, restricted stock units, reverse stock split, tax withholding