Lucid's stock fell by 40% following a bankruptcy rumor reported by an EV blog. A denial was issued a few hours later.

      Lucid stock experienced a drop of over 40% in intraday trading due to a bankruptcy report that the company has denied. AlixPartners chose not to provide any comments on the matter. Lucid described the rumors as "completely false."

      On Tuesday, Lucid Motors' stock plummeted by more than 40% at one point, leading to multiple trading halts due to volatility, after an electric vehicle-focused publication claimed that the company was considering going private or filing for Chapter 11 bankruptcy protection. The stock later recovered some losses and ended the day down 16% at $4.62 per share.

      The report indicated that Lucid had approached restructuring advisory firm AlixPartners to assess these options and present their findings to the board ahead of the next meeting. It also mentioned that AlixPartners advised the board to focus on further restructuring in both the US and Europe, particularly on the Gravity SUV. AlixPartners opted not to comment.

      Lucid refuted the report, stating it is "completely false." The company mentioned it possesses "sufficient liquidity to continue operations well into next year" and has not established any special board committee to investigate the scenarios mentioned. "AlixPartners is assisting us solely in that regard and has not recommended bankruptcy to management or the Board," Lucid explained. Last month, the company reduced its workforce by 18% under new CEO Silvio Napoli as part of a cost-cutting initiative and failed to meet Wall Street’s expectations for Q2 delivery results earlier this month.

      Lucid receives significant backing from Saudi Arabia’s Public Investment Fund, which holds nearly 57% of the company and has consistently provided capital to maintain its operations. The company suspended production guidance in May as Napoli reviewed business decisions, citing the necessity to reduce "elevated inventory." The EV manufacturer has been hindered by slower-than-anticipated adoption rates, the loss of the $7,500 federal tax credit, and regulatory changes from the Trump administration. At least a dozen EV models are set to be discontinued or paused by 2026 as the US market contracts, and Lucid is facing similar challenges with considerably less scale than its competitors.