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.
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.
