Lucid Motors Denies Bankruptcy Rumors After Stock Plunge

Lucid Motors denied reports that it was considering a Chapter 11 bankruptcy filing or a take-private deal, calling the claims completely false. The rumors, originating from an electric vehicle publication, suggested that consulting firm AlixPartners had recommended these options to the board. The news triggered a massive sell-off on July 14 and 15, 2026, with shares plunging more than 50% intraday and prompting a trading halt by the Nasdaq. The stock eventually recovered to close down 16% at $4.62 per share.

Nick Twork, the company's chief communications officer, stated that Lucid has sufficient liquidity to maintain operations well into next year and has not formed a special board committee to explore bankruptcy. While the company confirmed it is working with AlixPartners, it clarified the firm is only assisting in strengthening operations and improving execution.

This volatility comes as the company undergoes a restructuring led by CEO Silvio Napoli. Measures to align with demand include laying off over 2,000 employees—an 18% reduction in the U.S. workforce—and eliminating a production shift at its Arizona factory. Financially, Lucid reported a first-quarter 2026 net loss of $1.02 billion, with approximately $700 million in cash against $2 billion in long-term debt. The company is currently focusing on the upcoming Gravity SUV, a more affordable midsize EV, and a robotaxi partnership with Uber and Nuro.