Lucid Group refutes reports of exploring bankruptcy or privatization, citing sufficient liquidity into next year.
Lucid Group’s stock dropped as much as 40% intraday Tuesday before closing 16% lower at $4.62 after a report alleged the company was considering bankruptcy or going private. The electric vehicle maker denied the claims, calling them “completely false.”
The report, citing unnamed sources, claimed consulting firm AlixPartners recommended Lucid’s board explore Chapter 11 or privatization, along with restructuring in the U.S. and Europe. Lucid stated AlixPartners was assisting with operations and had not suggested bankruptcy. Trading was halted multiple times due to volatility, with shares swinging between $5.76 and $2.37.
Lucid’s chief communications officer confirmed the company has sufficient liquidity to continue operations well into next year, per recent quarterly filings. Shares fell an additional 4.1% in premarket trading Wednesday.