Lucid Shares Plunge 40% on Bankruptcy Rumor from an EV Blog
Lucid shares plummeted 40% on a bankruptcy rumor originating from an EV blog. The denial came hours later.
An EV Publication’s Report and Lucid’s Response
An EV publication claimed that AlixPartners was exploring Chapter 11 and going-private options for Lucid. However, Lucid asserts the report is completely false. The company states it has sufficient liquidity to operate into next year and has not formed a special board committee to consider such scenarios.
Market Reaction and Background
Lucid stock dropped over 40% intraday following the rumor, leading to multiple halts due to volatility. Despite recovering some losses, the stock closed down 16% at $4.62 per share.
The publication reported that Lucid had requested a review of restructuring options from AlixPartners and that the advisory firm encouraged further cost-cutting in the US and Europe, focusing on the Gravity SUV. AlixPartners declined to comment on the matter.
Recent Challenges for Lucid
Lucid recently cut 18% of its workforce under new CEO Silvio Napoli as part of a cost-saving plan. They also missed Wall Street expectations for Q2 delivery results. The company is heavily backed by Saudi Arabia’s Public Investment Fund, which owns nearly 57% of the stock and has been instrumental in providing capital to keep Lucid operational.
The broader EV market is facing challenges as well, with at least a dozen EV models discontinued or paused in 2026 due to a shrinking US market. Lucid, with less scale than competitors, is navigating these headwinds.