LCID Stock On Track For Best Week In A Year After Lucid Fires Back At Bankruptcy Speculation

• Lucid denied the rumors as “completely false."
• The company said that it has sufficient liquidity to undertake operations into next year. 
• Investors are now looking forward to the company’s quarterly earnings call on August 4.

Lucid Motors (LCID) shares rose for a second straight day on Thursday after the electric vehicle maker forcefully rejected reports that it was considering bankruptcy or a take-private transaction, rebounding from a brutal selloff earlier in the week.

The stock traded 12% higher at the time of writing and is on track to clock its best week since July 2025, thanks to a 29% jump on Wednesday, if gains hold.

Bankruptcy Rumors And Lucid’s Denial

The stock’s dramatic rise and fall started after an Electric-Vehicles.com report on Tuesday said that restructuring adviser AlixPartners has outlined scenarios to the company’s board, including taking the company private or seeking Chapter 11 protection. The stock fell as much as 50% on the news, but pared gains after the company refuted the report as “completely false.”

“The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today,” Lucid said in a statement to Stocktwits. It also added that AlixPartners is only assisting the company to improve operational performance and did not advise Lucid on a take-private transaction or bankruptcy. They further didn't suggest either option to the company management or board, it added.

The company also delivered a cease and desist letter to the publication stating that the company “unequivocally denies the central factual assertions” in the article.  

Lucid’s new CEO, Silvio Napoli, also said in a post on LinkedIn that the claims circulated were “far from the facts” and that he looks forward to providing a full update on its quarterly earnings call on August 4.

Lucid Financials And Updates

Lucid, majority-owned by Saudi Arabia’s Public Investment Fund (PIF), has faced significant headwinds as an electric vehicle maker.

Earlier this month, the company reported second-quarter production of 4,774 vehicles and deliveries of 3,953 units— marking a modest year-over-year increase but short of analyst expectations amid slower-than-hoped demand for the new Gravity SUV.

The results coincided with a sweeping leadership overhaul under CEO Silvio Napoli, who assumed the role in June. Napoli replaced CFO Taoufiq Boussaid with automotive finance veteran Alexander De Bock, appointed new executives for technology, customer, digital, and transformation roles, flattened the reporting structure by halving direct reports to the CEO, and eliminated the COO position. These moves followed June layoffs of roughly 1,500 employees, about 18% of the workforce, and the removal of a second production shift at the Arizona plant, aimed at delivering roughly $158 million in annual savings.

Financially, Lucid continues to face steep losses and negative gross margins despite revenue growth. In the first quarter, it posted revenue of $282.5 million, up 20% year-over-year, but recorded a net loss of approximately $1.03 billion. The company has relied heavily on its majority shareholder, Saudi Arabia’s Public Investment Fund, for support. It raised about $1.05 billion in April, including $550 million in preferred stock from PIF, $200 million from Uber, and a public offering, and drew an additional $800 million from an existing delayed-draw term loan facility in early July.

How Did LCID Retail Traders React?

On Stocktwits, retail sentiment around LCID stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volumes remained at ‘extremely high’ levels.

A Stocktwits user termed the stock “still undervalued.”

Another user said that the stock is “stronger than I originally gave it credit for.”

A third user opined that the company will eventually file for bankruptcy protection. “Just delaying the inevitable,” they wrote.

LCID stock has fallen 40% year-to-date. 

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