Lucid shares plunged 40% on a bankruptcy rumour from an EV blog. The denial came hours later.
TL;DR
Lucid stock dropped 40% intraday on a bankruptcy report it denies. AlixPartners declined to comment. Lucid says the rumours are “completely false.”
Lucid Motors stock fell more than 40% at one point on Tuesday and was halted for volatility multiple times after an EV-focused publication reported the company was considering going private or filing for Chapter 11 bankruptcy protection. The stock recovered some losses and closed down 16% at $4.62 a share.
The report said Lucid asked restructuring advisory firm AlixPartners to review those options and present findings to the board before its next meeting. It also said AlixPartners had encouraged the board to further restructure in the US and Europe and focus on the Gravity SUV. AlixPartners declined to comment.
Lucid called the report “completely false.” The company said it has “sufficient liquidity to carry its operations well into next year” and has not...
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