Lucid Motors denies bankruptcy report after record share price plunge
Lucid Motors has rejected speculation it is considering bankruptcy after its stock suffered a record 50% plunge, exposing deep investor anxieties about demand and liquidity in the global electric vehicle sector.
Lucid Motors has categorically denied reports that it is exploring Chapter 11 bankruptcy protection, following a historic collapse in its share price. The company’s stock plummeted more than 50% on Tuesday, marking its largest single-day drop, before recovering slightly to trade at $4.72.
The rumours originated from an electric vehicle blog, which cited two unnamed sources claiming the company was weighing insolvency or a transition to private ownership on the advice of consulting firm AlixPartners. Nick Twork, Lucid’s chief communications officer, dismissed the claims. "The rumors are completely false," Twork said, adding that the company has "sufficient liquidity to carry its operations well into next year" and has not formed a special board committee to explore such scenarios.
Twork clarified that AlixPartners is assisting Lucid strictly with strengthening operations and "has not recommended bankruptcy to management or the Board." The firm has a notable history with struggling electric vehicle startups, having previously been brought in by Lordstown Motors and Faraday Future before those companies faced severe financial distress or collapsed entirely.
Despite the denial, the severe market reaction underscores investor anxiety surrounding the capital-intensive electric vehicle sector, a dynamic closely watched by European manufacturers facing similar demand headwinds. Lucid delivered 3,953 vehicles in the second quarter, a marginal increase from the same period last year that highlights its ongoing struggle to translate technological specifications into consumer sales.
The company has responded to these demand constraints with aggressive cost-cutting. It has laid off more than 2,000 employees this year and recently eliminated a second production shift at its Arizona factory to align output with "anticipated demand." These moves follow the appointment of a new chief executive as part of a broader restructuring effort.
Lucid is pinning its near-term recovery on the launch of a smaller, more affordable electric SUV later this year. The company is also attempting to diversify its revenue through a robotaxi venture with Uber and Nuro, with Uber committing to purchase at least 35,000 Nuro-equipped Lucid vehicles over the coming years.
