Shares Plunge by Half Intraday as Lucid Denies Reports of Privatization and Bankruptcy

Golden Ten Data reported on July 15 that electric vehicle company Lucid Group (LCID.O) has denied blog posts suggesting the company may undergo a privatization deal or file for Chapter 11 bankruptcy protection in the United States, stating that the article is “completely untrue.” Previously, the company’s share price plummeted over 50%, marking its largest single-day drop in history. Lucid stated it has sufficient liquidity to support operations until next year and has not formed a special board committee to explore the scenarios mentioned in the reports. The company also noted that restructuring advisor AlixPartners is assisting Lucid in improving execution and operations but has not recommended filing for bankruptcy. Due to sharp share price fluctuations, the stock was halted several times after 1 p.m. Eastern Time on a certain exchange, once plunging 57% to $2.37, before narrowing losses to 15% near the market close.