Lucid Group’s stock dropped to $4.62 after reports surfaced of potential bankruptcy or going-private options under review.
Lucid Group (LCID) shares closed 16% lower at $4.62 on July 14, following a 40% intraday decline and multiple trading halts. The selloff was triggered by speculation the company is exploring bankruptcy or going-private options, according to reports.
The company has faced mounting challenges, including missed delivery targets and a 99% drop in its stock from its peak. Lucid recently replaced much of its executive team and hired AlixPartners to evaluate strategic alternatives, including restructuring efforts focused on its Gravity SUV.
Lucid denied the bankruptcy rumors, stating it has sufficient cash to fund operations into next year and no special board committee has been formed. The company called the reports “completely false” but did not address the AlixPartners engagement directly.