Lucid denies bankruptcy talk, but the stock still sinks to a record low

By William Gavin

EV maker's stock down more than 50% intraday, then pares the bulk of those losses after Lucid says 'the rumors are completely false'

Lucid, an electric-vehicle rival to Tesla, has struggled to sell its luxury vehicles.

Lucid stock had lost more than half its value at one point on Tuesday, before it started to bounce back after the troubled luxury electric-vehicle company denied a new report suggesting a bankruptcy was being considered.

In addition to bankruptcy, a report from the website EV, citing people familiar with the matter, said Lucid was also considering further restructuring initiatives or going private.

The report came about a week after CarBuzz had reported that Lucid (LCID) hired AlixPartners, which in the past advised companies ranging from General Motors (GM) to Enron on pursuing bankruptcy.

"The rumors are completely false," Lucid said in a statement Tuesday. It added that AlixPartners is assisting it on improving its execution and strengthening operations and has not recommended bankruptcy to either Lucid's board or management team.

Still, investors were rattled by the news. Shares sank as much as 57% to an intraday low of $2.37, the stock's largest intraday percentage decline on record, according to Dow Jones Market Data. Trading was halted several times on Tuesday for volatility.

Although the stock pared most of those losses, it still closed down 16.2% to a record low of $4.62.

The new EV report adds to Lucid's recent woes, including upheaval on the executive level. Peter Rawlinson, the chief engineer on Tesla's Model S who led Lucid after it went public, left the company in February 2025. It was only last month that former Schindler executive Silvio Napoli took the reins as CEO.

In June, Lucid began implementing a plan that it said would save the company $158 million by laying off 18% of its U.S. workforce and eliminating a shift at its factory in Arizona. Marc Winterhoff, Lucid's COO and former interim CEO, also left the company.

On July 2, Lucid reshaped its executive team, which included the departure of CFO Taoufiq Boussaid.

"We are simplifying the organization, strengthening leadership, enforcing accountability and aligning our structure with the priorities that matter most: customers, quality, and innovation," Napoli said in a statement.

Lucid delivered 3,953 vehicles last quarter, below Wall Street's expectations for about 5,000 cars. It delivered 3,093 cars in the March quarter, which was also fewer than analysts had expected, according to FactSet.

In a note to clients last week, RBC analyst Tom Narayan said that Lucid's brand simply "does not have enough traction" and just a "modest amount of momentum" was driving demand.

The company ended the first quarter with about $700 million in cash and had raised $1.05 billion from robotaxi partner Uber Technologies (UBER) and Ayar Third Investment, an affiliate of Saudi Arabia's Public Investment Fund, in April. The PIF has a roughly 57% stake in Lucid, according to filings.

"The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings," Lucid said in a statement. It ended the first quarter with some $3.2 billion in liquidity, according to the company.

Lucid is expected to report revenue of $399 million against a net loss of $898 million in the June quarter, according to FactSet estimates.

-William Gavin

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07-14-26 1621ET