Lucid Group on Tuesday denied as “completely false” a blog post saying it was considering a take-private deal or filing for Chapter 11 bankruptcy, after the electric car maker’s stock plunged more than 50% in its steepest single-day decline.
Lucid said it has sufficient liquidity to fund its operations into next year and has not established a special board committee to consider the reported scenario. He also said that restructuring advisor AlixPartners is helping the company improve its execution and operations and is not recommending bankruptcy.
The Electric-Vehicles blog reported that AlixPartners has been asked to present its findings to Lucid’s board of directors by its next meeting, and that scenarios being considered include taking the company private or seeking Chapter 11 bankruptcy protection, but added that no decision has been made yet.
Trading in the stock was suspended multiple times after 1:00 pm ET due to price fluctuations. Shares fell as much as 57% in afternoon trading, before losses, to $2.37.
The stock was down about 13% as of 2:45 p.m. ET.
AlixPartners did not immediately respond to a Reuters request for comment.
Lucid stock has struggled to turn a profit in the nearly five years since its market debut and has lost about 99% of its value since going public.
The report comes as Lucid undergoes a major restructuring under CEO Silvio Napoli, who took over in June.
Last month, the company announced it would cut about 18% of its U.S. workforce, eliminate the role of chief operating officer and streamline its leadership structure in a bid to cut costs and improve execution.
Lucid also announced a series of executive changes, including the appointment of Alexander de Bock as chief financial officer and the appointment of new leaders for technology, customer, transformation and digital.
In May, Lucid suspended its 2026 vehicle production forecast from 25,000 to 27,000 vehicles after deliveries of its Gravity SUV were suspended due to supplier-related issues, and said it would provide updated guidance following a strategic review under Napoli.
Despite receiving billions of dollars in support from Saudi Arabia’s public investment fund, Lucid has struggled with weak demand, sustained cash burn and repeated capital increases, leaving investors wondering how quickly it can scale up production and move toward profitability.
(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)
