Lucid Group denies bankruptcy rumors as shares tumble after restructuring report

Shares of electric‑vehicle maker Lucid Group fell as much as 55% on Tuesday after a media report said the company had hired restructuring adviser AlixPartners to evaluate a possible Chapter 11 filing or a take‑private transaction. Lucid quickly refuted the claim, with chief communications officer Nick Twork stating the rumors were “completely false” and that the firm has sufficient liquidity to fund operations well into next year. The company confirmed it has retained AlixPartners, but only for operational efficiency work, and said no special board committee has been formed to consider bankruptcy or privatization.

Lucid disclosed around $4.6 billion in total liquidity and an $800 million draw on a Saudi‑backed term loan, arguing that its cash should sustain the business through the end of next year. The firm continues to cut costs, having eliminated about 18% of its U.S. workforce, removed the chief operating officer role and halted a second production shift at its Arizona plant. Production remains far below the Casa Grande factory’s 90,000‑vehicle capacity, with second‑quarter deliveries of 3,953 vehicles.

Analysts have repeatedly lowered price targets, reflecting concerns over cash burn, weak demand and the uncertainty sparked by the false bankruptcy story. Lucid’s largest shareholder, Saudi Arabia’s Public Investment Fund, remains a major backer, but investors remain wary of further volatility.