Lucid stock falls over 40% after bankruptcy rumor report

Shares of electric vehicle manufacturer Lucid Group plummeted more than 40 percent on Tuesday, July 14, 2026, following a report that the company was considering filing for Chapter 11 bankruptcy or going private. The stock's dramatic plunge triggered multiple volatility trading halts during the session.

The report originated from the website electricvehicles.com, which claimed restructuring firm AlixPartners had advised Lucid's board to evaluate strategic options, including a potential privatization or a bankruptcy filing. The news sent the stock, already down significantly for the year, to an intraday low near $2.54, representing one of its worst single-day declines.

Lucid's head of communications, Nick Twork, issued a swift and specific denial. He stated the rumors were completely false and clarified that AlixPartners had not recommended bankruptcy to management or the board. According to Twork, the firm is solely engaged to help improve operational efficiency, and no special board committee has been formed to explore a buyout or restructuring. He emphasized the company's liquidity, asserting it is sufficient to carry operations well into next year.