Lucid was hit by "bankruptcy rumors" and its stock price plunged 55% during the session

Lucid was hit by "bankruptcy rumors" and its stock price plunged 55% during the session.

Lucid Group, the "Tesla challenger" electric vehicle manufacturer that had high hopes in the past, was rumored to be considering privatization or filing for bankruptcy protection. As a result, its stock price plunged 55% during the session on Tuesday, the largest intraday drop in history.

In response to the overwhelming rumors, Lucid immediately issued an emergency statement to strongly deny it, saying that the relevant reports were "completely untrue." The company clarified that the restructuring consultant Alix Partners it hired did not recommend that it file for bankruptcy, but was only helping to improve the company's operational execution efficiency.

The restructuring board did not form a special committee on bankruptcy or privatization options. Buoyed by this clarification, the stock price subsequently rebounded sharply.

It is reported that the entry of consulting firm Alix Partners is to conduct a comprehensive operational review of Lucid, aiming to optimize the business structure, reduce costs, and ensure the smooth launch of its new mid-size model.

Lucid officially emphasized that the company's current book funds are sufficient to support its operations until the second half of next year, and daily operations during the launch of new cars still rely on the financial support of major shareholders.

However, this turmoil has once again put the expectations of the “Saudi financier” behind Lucid to the test. Currently, new CEO Silvio Napoli is leading a series of management reorganizations, including streamlining the executive structure and introducing a new financial director.

Whether the company can normalize its business through internal reforms and successfully launch new models will be the key to determining its future survival. (

#Stocks #Tesla #EVs #Oil