Lucid Group (NASDAQ: LCID) shares plunged more than 40% at one point during intraday trading on July 14, triggering multiple trading halts due to volatility; it ultimately closed down 16%, at $4.62 per share. The sell-off was triggered by a report from the EV-focused website EV claiming that Lucid is considering going private or filing for Chapter 11 bankruptcy protection. In response, Lucid issued a statement saying the rumors are completely false.
Lucid Stock Dips More Than 40% Intraday, Triggers Multiple Trading Halts
According to reports, Lucid shares on Tuesday, July 14, 2026 (Tuesday), fell more than 40% at one point during intraday trading due to volatility, triggering multiple trading halts; it then recovered some of its losses and ultimately closed down 16%, at $4.62 per share. Market speculation suggests that Lucid is considering new options as the main catalyst behind this decline.
EV Website Report Says Lucid Hired AlixPartners to Assess Going Private or Bankruptcy
Reports indicate that the EV-focused website EV reported Tuesday that Lucid has hired advisory firm AlixPartners to evaluate options such as going private or filing for Chapter 11 bankruptcy protection, and plans to submit the assessment results before the next board meeting. The report also said AlixPartners encourages the board to further restructure its U.S. and European operations, focusing on the Gravity SUV. AlixPartners did not comment on the report.
Lucid stated in an official release: “These rumors are completely false.” The full statement added: “The company has sufficient liquidity to sustain operations through next year and has not formed any special board committee to explore the various options announced today. AlixPartners only assists with execution and operations and has not advised management or the board to file for bankruptcy.”
Lucid’s Current Situation: 18% Layoffs, Q2 Deliveries Miss Expectations, EV Subsidy Canceled
Reports indicate that Lucid is facing multiple challenges:
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Slower-than-expected EV adoption: overall EV demand growth is lagging expectations
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Cancellation of the $7,500 federal electric vehicle subsidy: directly impacting consumers’ willingness to purchase vehicles
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18% layoffs: announced last month, reducing U.S. staff by 18% as part of a cost-saving initiative
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Q2 deliveries miss expectations: earlier this month, Q2 delivery results fell short of Wall Street estimates
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Production guidance paused: announced in May that it would pause production guidance; new CEO Silvio Napoli stated that business decisions need review and that “excessive” vehicle inventory should be reduced
Lucid’s major shareholder is the Saudi Arabian Public Investment Fund (PIF). The new CEO, Silvio Napoli, has announced a reorganization of the leadership team to “simplify the company’s structure.”
FAQ
Why did Lucid stock plunge more than 40% on Tuesday?
Reports indicate that the EV-focused website EV reported Lucid is considering going private or filing for Chapter 11 bankruptcy, which triggered panic selling; the stock fell over 40% at one point and triggered multiple trading halts. However, Lucid’s official statement denied these rumors.
How did Lucid respond to rumors about bankruptcy and going private?
Lucid’s official statement said, “these rumors are completely false,” adding that the company has sufficient liquidity to operate through next year and has not formed a special committee to explore such options. AlixPartners only provides execution and operational advice and has not recommended bankruptcy to management or the board.
What major challenges is Lucid facing right now?
Lucid faces several pressures, including slower-than-expected EV adoption, the cancellation of the $7,500 federal EV subsidy, 18% layoffs of U.S. employees announced last month, Q2 delivery results below expectations, and a pause in production guidance announced in May.
