On the Dash:
- Lucid stock plunged 41% intraday on unverified bankruptcy and take-private rumors.
- An SEC filing denied the rumors, citing sufficient liquidity into next year.
- Layoffs, missed deliveries and a suspended production forecast continue pressuring the company.
The EV maker, Lucid, denied reports that it’s weighing bankruptcy or a sale of the company. The denial comes after a report sent its stock plunging as much as 41% during the trading day. Shares were halted for volatility multiple times before closing down 16% at $4.62 Tuesday.
Electric vehicle site electric-vehicles.com reported Tuesday that Lucid was considering taking the company private or filing for Chapter 11 bankruptcy protection. The site said the EV maker had asked restructuring firm AlixPartners to study those options and report back to the board before its next meeting.Â
According to the report, AlixPartners had urged Lucid to pursue another round of restructuring in the U.S. and Europe and to shift its focus toward the Gravity SUV. However, AlixPartners declined to comment on the report.
Lucid pushed back hours later in a filing with the Securities and Exchange Commission (SEC). “The rumors are completely false. 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,” Lucid said in the filing.
The company drew $800 million from a credit facility with Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund, on July 6, according to a separate SEC filing.
Notably, the EV maker has cut its workforce twice this year, including an 18% reduction announced last month. The company missed Wall Street’s second-quarter delivery estimates and suspended its 2026 production guidance in May as new CEO Silvio Napoli reviews the business. Lucid also faces pressure from the elimination of the $7,500 federal EV tax credit.
