Lucid Group (LCID) shares crashed practically 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 someday.
Why the Lucid Inventory Crash Ran So Deep
The panic began with a report from trade outlet EV. It stated turnaround agency AlixPartners will quickly current choices to Lucid’s board. Two of these choices reportedly stand out.
- The primary goes non-public, which means Lucid would go away the inventory market.
- The second is Chapter 11 chapter, a authorized course of that lets an organization hold working whereas it reworks its money owed.
The adviser additionally reportedly needs Lucid to pause its push into Europe and pour its vitality 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 value, Lucid’s 330 million shares have been price below $800 million.
In November 2021, the corporate was valued close to $90 billion, briefly greater than Ford. Nerves have been already uncooked after the SpaceX inventory crash.
Lucid Pushes Again as August 4 Earnings Loom
Lucid referred to as the rumors utterly false. It stated AlixPartners helps the corporate run extra effectively, not getting ready a courtroom submitting.
“AlixPartners has not really helpful chapter to administration or the Board,” the corporate shared the assertion on Tuesday.
It added it has sufficient money to final effectively into subsequent 12 months.
Twork serves as Chief Communications Officer at Lucid Motors. The clarification seemingly explains the continuing LCID inventory restoration.
Nonetheless, the concern has roots in Lucid’s personal numbers. The corporate misplaced $2.7 billion in 2025, per its filings. It misplaced one other $1.03 billion within the first quarter of 2026, practically triple the 12 months earlier than. That quarter, constructing vehicles price $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 accomplice Uber. In July, it reportedly borrowed $800 million extra from an affiliate of Saudi Arabia’s Public Funding Fund, its majority proprietor.
Silvio Napoli, the previous Schindler boss who grew to become CEO on June 1, has been chopping prices and jobs since.
The following large check comes on August 4, when Lucid experiences first-half outcomes. Buyers will watch carefully, alongside Tesla’s bullish chart setup and July’s US shares to observe.
Neither Lucid nor Twork instantly responded to BeInCrypto’s request for remark.
The submit Lucid Inventory Crashes 50% on Alleged False Report appeared first on BeInCrypto.