'Completely False': Lucid Denies Report That It's Weighing Bankruptcy After Shares Crash
A report that Lucid was considering bankruptcy triggered a massive selloff and an official denial from the automaker.
- A report stating that Lucid was considering Chapter 11 protection sent its stock into a freefall.
- The automaker's stock fell more than 50% within an hour.
- Lucid calling them "completely false."
Electric automaker Lucid issued a strong denial on Tuesday after a report that it was considering bankruptcy protection sent its stock into free fall.
The brand's stock fell nearly 56% over the course of an hour this afternoon after a report from an EV blog claimed that Lucid was weighing two major restructuring options: bankruptcy or going private. Lucid's head of communications, Nick Twork, took to X to outright dispel the report, but not before the selloff triggered two volatility trading halts.
"The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is on improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation," he said.
According to the report, management consulting firm AlixPartners was tasked with providing Lucid's board advice on restructuring the company. The report, which cites two unnamed sources, states that the firm was asked to consider if Lucid should be advised to "seek Chapter 11 protection" or be taken private.
Twork called the rumors "completely false" in a statement and said that while it has engaged AlixPartners, it is strictly to help the company improve its execution and operations. Twork went on to say that AlixPartners "has not recommended bankruptcy to management or the board."
Lucid stock was already in trouble prior to this event—its market cap down 97% overall since its peak in 2021. Share prices fell from $11.69 in January to $5.51 just prior to the report triggering the selloff—a loss of nearly 53%. Today's low resulted in a brief dip to $2.46 before recovering to $4.64 by the end of regular trading.
The automaker has struggled to ramp up vehicle production to high volumes, and it's struggled with quality issues quality and software issues that owners have been vocal about online. In a bid to boost sales, it recently offered up to $10,000 off 2026 models it had in inventory. Lucid projected producing as many as 27,000 vehicles this year (a roughly 50% jump from its 2025 count of 17,840 units). It later made a "governance decision" to pull that production guidance prior to releasing its second-quarter sales figures. For the fist half of the year, the automaker says it produced 10,274 vehicles and delivered 7,046.
A new CEO who arrived last month is being tasked with a turnaround. He has overhauled the automaker's C-suite. Last month, the company cut 18% of its staff, following a round of layoffs earlier in the year.
More Lucid News
RECOMMENDED FOR YOU
You Can Get A Lucid Gravity SUV For $10,000 Off Plus 0% Interest
'We Will Not Survive': Toyota Boss Wants Japanese Automakers To Team Up To Beat Chinese EVs
Lucid Just Had A Big Executive Shakeup. Here's What You Need To Know
Nearly 10,000 EVs Were Tested For Battery Degradation. These 2 Models Won Out.
California's New EV Incentive Is Almost Here—With Special Benefits For Rivian And Lucid
Exclusive: We Finally Know The Slate Truck's Destination Fee. Here's The Final Price
Lucid Lays Off 18% Of Its Workers And Cuts Production At Arizona Plant
Source link
