Lucid Stock Crashes 50% on Alleged False Report
Lucid Group (LCID) shares crashed almost 50% on Tuesday after a report raised chapter fears. The inventory fell so quick that exchanges paused buying and selling thrice.
The report claimed the electrical automobile (EV) maker might go non-public or file for chapter. Lucid rapidly denied it, but the panic erased about half of its market worth in in the future.
Why the Lucid Stock Crash Ran So Deep
The panic began with a report from trade outlet EV. It mentioned turnaround agency AlixPartners will quickly current choices to Lucid’s board. Two of these choices reportedly stand out.
- The first goes non-public, that means Lucid would depart the inventory market.
- The second is Chapter 11 chapter, a authorized course of that lets an organization preserve working whereas it reworks its money owed.
The adviser additionally reportedly desires Lucid to pause its push into Europe and pour its power into the Gravity SUV. That automobile has struggled with high quality issues since manufacturing started in late 2024.
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The market response was brutal. Shares sank as a lot as 55% and hit a report low of $2.37. At that worth, Lucid’s 330 million shares had been value below $800 million.
In November 2021, the corporate was valued close to $90 billion, briefly greater than Ford. Nerves had been already uncooked after the SpaceX stock crash.
Lucid Pushes Back as August 4 Earnings Loom
Lucid known as the rumors fully false. It mentioned AlixPartners helps the corporate run extra effectively, not getting ready a court docket submitting.
“AlixPartners is aiding us in that and nothing else and has not really helpful chapter to administration or the Board. We undertake no responsibility to replace our feedback on this matter,” Nick Twork, Chief Communications Officer at Lucid Motors, mentioned in a statement on Tuesday.
He added it has sufficient money to final properly into subsequent 12 months. BeInCrypto couldn’t independently confirm this declare.
Neither Lucid nor Twork instantly responded to BeInCrypto’s request for remark.
Notwithstanding, the clarification probably explains the continuing LCID inventory restoration.
However, the concern has roots in Lucid’s personal numbers. The firm misplaced $2.7 billion in 2025, per its filings. It misplaced one other $1.03 billion within the first quarter of 2026, almost triple the 12 months earlier than. That quarter, constructing vehicles value $594 million towards $282 million in gross sales.
That hole explains the fixed want for recent cash. Lucid raised about $1.05 billion in April, together with $200 million from robotaxi companion Uber. In July, it reportedly borrowed $800 million extra from an affiliate of Saudi Arabia’s Public Investment Fund, its majority proprietor.
“So u are working with AlixPartners, one of many largest chapter 11 advisors however have had no reorganization talks??,” one person challenged.
Silvio Napoli, the previous Schindler boss who turned CEO on June 1, has been chopping prices and jobs since.
The subsequent huge take a look at comes on August 4, when Lucid reviews first-half outcomes. Investors will watch intently, alongside Tesla’s bullish chart setup and July’s US stocks to watch.
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