Lucid Stock Plunges 40%+ on Bankruptcy Report; Company Denies
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- Lucid Motors stock fell more than 40% intraday Tuesday with trading halted multiple times for volatility after EV publication reported the company was considering going private or filing for Chapter 11 bankruptcy protection.
- Lucid Motors called the report 'completely false,' stating it has 'sufficient liquidity to carry its operations well into next year' per its most recent quarterly filings and has not formed any special board committee to explore bankruptcy or going-private scenarios.
- AlixPartners was reported to have urged Lucid's board to further restructure U.S. and European operations and prioritize the Gravity SUV; the firm declined to comment on the report.
- Lucid Motors announced an 18% U.S. workforce layoff last month as part of a cost-savings plan, and new CEO Silvio Napoli shook up the leadership team after the company missed Wall Street's Q2 delivery expectations.
- Lucid Motors suspended its production guidance in May, with Napoli citing a need to reduce 'elevated inventory' of vehicles amid slower-than-expected EV adoption and the Trump administration's elimination of the $7,500 federal EV purchase incentive.
- Saudi Arabia's Public Investment Fund remains a major backer of Lucid, which is navigating one of the most capital-intensive EV manufacturing operations in the U.S.
Why it matters: A 40%+ single-day wipeout triggered by a single unverified report exposes how thin investor confidence in Lucid has become — the company is burning cash, cutting 18% of U.S. staff, and just lost its $7,500 federal tailwind, so even a rumor of Chapter 11 is enough to crater the stock despite management's denial.
