Lucid Bankruptcy Rumour Denial Follows Historic Stock Crash
Quick Reads
- Lucid’s stock crashed more than 50% Tuesday after a report claimed it was weighing bankruptcy.
- Trading was halted multiple times as shares swung wildly during the sell-off.
- Lucid strongly denied the rumor, calling it “completely false” in an official statement.
- The company confirmed it hired restructuring firm AlixPartners, but only for operational improvements.
- Lucid says it has enough liquidity to fund operations well into next year.
Lucid bankruptcy rumor denial arrived just hours after the EV maker’s stock suffered its worst single-day drop ever. Shares plunged more than 50% on Tuesday following a report from an EV-focused outlet claiming Lucid was exploring Chapter 11 protection.
The sell-off triggered multiple volatility halts on Nasdaq before shares partially recovered. Nick Twork, Lucid’s chief communications officer, dismissed the report outright. He confirmed Lucid had engaged restructuring firm AlixPartners, but strictly for operational improvements. “The rumors are completely false,” Twork said, adding that no special board committee exists to weigh bankruptcy options.
Lucid also said it holds enough liquidity to fund operations well into next year. Still, the company’s underlying situation remains genuinely difficult. Lucid lost over a billion dollars in the first quarter alone, nearly tripling its loss from a year earlier. It has also cut staff twice this year and overhauled its executive suite under new leadership.
Despite the denial, Wall Street clearly remains jumpy about Lucid’s long-term prospects. The company’s official channels continue pointing to upcoming midsize SUVs as its path to profitability. Whether that plan survives contact with reality may determine more than just Lucid’s future.
