Lucid Motors refutes restructuring rumors but shares drop sharply after reports of potential bankruptcy or privatization options.
Lucid Motors saw its shares fall 17% to $4.54, hitting a low of $4.54 after reports suggested the company was exploring strategic options, including bankruptcy or going private. The stock had peaked at $648.60 during the post-COVID electric vehicle boom but has since collapsed amid operational challenges and quality issues.
The company is reportedly working with restructuring adviser AlixPartners, which was asked to present a report to the board ahead of its next meeting. Sources indicated that options under review include Chapter 11 bankruptcy protection or taking the Saudi-backed automaker private, alongside a proposed restructuring in the U.S. and Europe.
Lucid issued a statement denying the rumors, asserting it has sufficient liquidity to continue operations into next year and that AlixPartners is only assisting with operational improvements. The company emphasized its focus on execution and product development, particularly its Gravity SUV, but the denial failed to stem the sell-off.