Lucid Responds to Bankruptcy and Takeover Rumours After Stock Plunges 41%

Lucid Motors has flatly denied reports that the electric vehicle maker is considering filing for Chapter 11 bankruptcy or going private. The company’s head of communications, Nick Twork, pushed back directly against the claims on Tuesday, calling the speculation entirely unfounded.

Despite the strong denial, the reports triggered panic on Wall Street, causing Lucid’s stock to plunge by more than 41% on Tuesday afternoon as investors reacted to the potential restructuring options.

The denial followed an exclusive report alleging that restructuring firm AlixPartners advised Lucid’s board of directors to weigh these drastic strategic options. Twork clarified on X that AlixPartners is solely helping the carmaker improve its operational efficiency.

“The rumors are completely false,” Twork wrote, adding that the advisory firm “has not recommended bankruptcy to management or the Board.”

According to Twork, Lucid has not established any special board committee to investigate a buyout or a restructuring under bankruptcy protection. He emphasised that the luxury EV manufacturer remains on stable financial footing for the near term, noting the company has “sufficient liquidity to carry its operations well into next year,” a detail backed up by its latest quarterly financial reports.

Instead of preparing for court filings, Lucid is focusing on ramping up its business. Twork stated that the company’s current priority is to improve execution, strengthen day-to-day operations, and fully realise the potential of its technology, upcoming products, and innovation.

Lucid is working to bolster its financial runway, reporting approximately $700 million in cash at the end of the first quarter, followed by an additional $1 billion capital raise in April. The electric vehicle manufacturer also maintains access to roughly $2 billion in undrawn term loan capacity to support its ongoing operations.

The company remains in an intensive growth and investment phase and is not yet profitable. Current projections suggest Lucid could incur losses totaling $6.7 billion through the end of 2028. According to FactSet, Wall Street analysts do not expect the company to achieve positive free cash flow until 2030. In 2025, Lucid delivered 15,800 vehicles and recorded a free cash flow of -$3.8 billion.