LCID Stock Tumbles On Bankruptcy Rumors — Lucid Says Reports Are ‘Completely False’

• Lucid said that it has sufficient liquidity to carry its operations well into next year. 
• Electric-Vehicles.com reported earlier in the day that restructuring adviser AlixPartners was asked to deliver findings to Lucid’s board before its next meeting.
• The adviser outlined scenarios that included taking the company private or seeking Chapter 11 protection, the report said.

Shares of Lucid Group Inc (LCID) fell as much as 50% on Tuesday but pared some losses after the company firmly rejected reports that it is weighing a take-private transaction or filing for bankruptcy protection.

At the time of writing, the stock was down 16%.

Lucid Rejects ‘Rumors’

“The rumors are 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.

The denial comes in direct response to an exclusive report published earlier on Tuesday by Electric-Vehicles.com. According to the report, restructuring adviser AlixPartners was asked to deliver findings to Lucid’s board before its next meeting. The adviser reportedly outlined scenarios that included taking the company private or seeking Chapter 11 protection, while also recommending additional restructuring steps focused on narrowing operations around the Gravity SUV, improving product quality, pausing or slowing certain programs, and prioritizing the upcoming Cosmos model and robotaxi work with Uber.

Lucid, however, told Stocktwits that AlixPartners is only assisting the company and “has not recommended bankruptcy to management or the Board.” The company is instead focusing on improving execution and strengthening operations, it said.

Lucid’s Performance And Financials

Lucid, majority-owned by Saudi Arabia’s Public Investment Fund (PIF), has faced significant headwinds as an electric vehicle maker. The company reported substantial losses in 2025 and has continued to burn cash at a high rate. It has undergone major leadership and operational changes since Silvio Napoli assumed the CEO role on June 1, including an 18% reduction in the U.S. workforce, elimination of the chief operating officer position, multiple senior executive departures, and the suspension of 2026 production guidance.

Lucid’s first-half 2026 financial results are scheduled for release on August 4. As of the end of the first quarter, which ended March 31, the company reported cash and cash equivalents of $700.4 million, and total liquidity of about $3.2 billion, including cash, short-term investments, and available credit facilities.

How Did LCID Retail Traders React?

On Stocktwits, retail sentiment around LCID stock jumped from ‘bearish’ to ‘bullish’ over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

A Stocktwits user said that the stock dropped “for literally nothing.”

Another user highlighted the EV maker’s cash burn rate.

LCID stock has fallen by about 56% year-to-date. 

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