Lucid (LCID -8.06%) stock is getting hit with a round of big sell-offs in Tuesday's trading. The electric vehicle (EV) company's share price was down 8.1% as of noon ET, and had been off as much as 8.6% earlier in the session.

After the market closed yesterday, Lucid submitted a filing to the Securities and Exchange Commission (SEC) notifying shareholders of an upcoming vote on a 10-for-1 reverse stock split that will take place on Aug. 18. The company had previously announced that it had submitted preliminary filings to initiate the reverse stock split plan, and yesterday's filing for the vote doesn't come as a surprise -- but Lucid shareholders are selling the stock to take profits on the heels of recent gains.

Image source: Getty Images.

Is Lucid stock a buy right now?

Lucid stock popped earlier this month after the company announced it had entered into a robotaxi partnership with Uber Technologies, but it's now given up much of its initial gains following the news. While the stock is still up roughly 21% over the last month, it's still down 15% across this year's trading.

Reverse stock splits can often create negative valuation pressures for a company's share price, but today's pullback in conjunction with confirmation of an upcoming vote on the split appears to be an overreaction. While Lucid continues to post a large loss on each vehicle that it sells, the company's operations have been supported by funding from its majority stakeholder -- Saudi Arabia's Public Investment Fund (PIF).

With continued support from the PIF, Lucid has a chance of growing its operations to the scale needed to support positive gross margins on vehicle sales. Lucid is a long way from shifting into profitability, and it's a very risky investment, but it has an outside shot of delivering huge returns for investors with very high risk tolerance.