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Lucid stock dives 40% on blog’s bankruptcy claim, then rebounds
Lucid plunged 40% after a blog said it was weighing Chapter 11. The EV maker denied the report as “completely false.”
Image: TNW
Lucid stock whipsaws on bankruptcy rumour
Lucid Motors shares fell more than 40% intraday on Tuesday, triggering multiple volatility halts, after an EV-focused publication reported the company was weighing going private or filing for Chapter 11 bankruptcy protection.
The stock later recovered part of the move, closing down 16% at $4.62.
Report points to AlixPartners review
According to the report, Lucid had hired restructuring advisory firm AlixPartners to evaluate strategic options, including going private or pursuing Chapter 11, and present its findings to the board before its next meeting.
The publication also said AlixPartners had encouraged Lucid’s board to:
- further restructure operations in the US and Europe
- concentrate resources on the Gravity SUV
AlixPartners declined to comment on the story.
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Lucid bankruptcy rumor rattles the whole EV sector
Lucid: bankruptcy talk is “completely false”
Lucid rejected the report outright, calling it “completely false.”
The company said it has “sufficient liquidity to carry its operations well into next year” and added that it has not formed a special board committee to examine the scenarios described in the article.
Lucid also narrowed the scope of AlixPartners' work, saying:
“AlixPartners is assisting us in that and nothing else and has not recommended bankruptcy to management or the Board.”
Cost cuts, missed targets, and Saudi backing
The stock rout comes as Lucid is already under pressure. The company cut 18% of its workforce last month under new CEO Silvio Napoli, as part of a cost-savings plan.
Earlier this month, Lucid missed Wall Street expectations for Q2 delivery results. In May, it suspended production guidance while Napoli reviewed major business decisions, citing the need to reduce “elevated inventory.”
Despite those headwinds, Lucid remains heavily supported by Saudi Arabia’s Public Investment Fund, which owns nearly 57% of the company and has repeatedly injected capital to keep it operating.
EV slowdown adds pressure
Lucid’s challenges are unfolding against a tougher backdrop for US electric vehicles. The company has been hit by slower-than-expected adoption, the loss of the $7,500 federal tax credit, and changing regulations under the Trump administration.
According to the report, at least a dozen EV models have been discontinued or paused in 2026 as the US market contracts, leaving Lucid to contend with those same pressures while operating at far smaller scale than many competitors.
Frontier Editor
Dan is our resident futurist, covering electric mobility, space exploration, and the smart home. He's interested in atoms just as much as bits. Whether it's a new battery chemistry, a reusable rocket, or a protocol that finally makes IoT devices talk to each other, Dan breaks down the engineering that pushes humanity forward.
via TNW
