Lucid shares plunged after a report said AlixPartners was reviewing Chapter 11 and going-private options. Lucid denied the claims. It closed down 16% at $4.62.

The beleaguered electric vehicle manufacturer’s stock crashed on Tuesday after a report indicated it could be considering bankruptcy or going private.

Lucid Group stock dropped 40% after retaining restructuring firm AlixPartners, with prediction markets pricing in a 48-50% chance of bankruptcy before 2027.