Lucid shares plunged 40% on a bankruptcy rumour from an EV blog. The denial came hours later.

TL;DRLucid 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 formed a special board committee to explore the scenarios described. “AlixPartners is assisting us in that and nothing else and has not recommended bankruptcy to management or the Board,” Lucid said. The company cut 18% of its workforce last month under new CEO Silvio Napoli as part of a cost-savings plan, and missed Wall Street expectations for Q2 delivery results earlier this month.