Lucid (LCID) stock was hit with multiple volatility halts and crashed more than 40% on Tuesday after a report claimed the EV maker was weighing Chapter 11 bankruptcy or going private.
Lucid quickly denied the report, calling the speculation “completely false” and pointing to its cash position as evidence it can keep operating well into next year.
What the report claimed
The report came from eletric-vehicles.com, which published an “exclusive” alleging that restructuring firm AlixPartners (something that was already reported) had advised Lucid’s board to consider strategic options including a take-private deal or a Chapter 11 filing.
The story hit at the worst possible time for a stock already in freefall. Shares plunged as much as 40%-plus intraday — one of the worst single-day drops in company history — triggering two volatility trading halts. Rival Rivian’s stock also slipped on the news as investors reassessed the EV startup landscape.
