Topline
Electric vehicle manufacturer Lucid Motors denied rumors it was considering filing for Chapter 11 bankruptcy, after a report suggesting it could prompted a more than 55% crash in its stock Tuesday afternoon.
The beleaguered electric vehicle manufacturer’s stock crashed on Tuesday after a report indicated it could be considering bankruptcy or going private.
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Key Facts
Shares of LCID were halted multiple times on Tuesday for volatility, with the share price collapsing to a low of $2.37 per share before significantly recovering, eventually trading at $4.68 by 3:30 p.m. EDT—still down around 15% on the day.
The rapid collapse from its price of around $5.50 a share early in the day took place after electric vehicle publication EV reported the company asked restructuring advising firm AlixPartners to deliver a final report on options for the company before its next board meeting.
Sources told EV the report would likely push for one more round of restructuring, but could also review taking the company private or filing for Chapter 11 bankruptcy protections.
In a statement sent to Forbes, Lucid’s chief communications officer Nick Twork called rumors “completely false,” adding that the company has “sufficient liquidity” for the next year and “has not formed any special Board committee to explore the scenarios reported today.”
AlixPartners is helping the company with its goals of “improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation,” Twork said, and has not recommended bankruptcy at this time.
Key Background
Lucid Motors, an electric vehicle manufacturer founded by a former Tesla engineer, went public in a blockbuster SPAC deal in 2021 in a deal that valued the company at $24 billion. The company was once billed as one of Tesla’s biggest rivals, and Saudi Arabia’s Public Investment Fund owns a majority stake in the company. However, its stock has fallen precipitously from its high of $577.50 in November 2021, erasing the vast majority of its value. The company posted a net loss of over $1.13 billion in its first quarter of 2026, and went through two rounds of layoffs, cutting 12% of its workforce in February and another 18% in June.
BIG NUMBER
$1.8 billion. That was Lucid Motors’ market cap as of Tuesday afternoon.