Shares of EV maker Lucid fall sharply after an EV industry website reported the company is weighing major strategic options, including a possible take-private transaction or filing for Chapter 11 bankruptcy. The report, attributed to unnamed sources familiar with confidential discussions, says Lucid is working with restructuring adviser AlixPartners. It also describes AlixPartners as urging the board to run another restructuring process in the United States and Europe and to narrow the company’s focus toward its Gravity SUV. According to the report, neither a take-private deal nor a Chapter 11 filing has been decided by the board, and the adviser is being asked to evaluate scenarios.
Multiple trading halts occur as the stock drops, with the decline reported by outlets ranging from around 40% to nearly half intraday. Quartz and The Next Web both note that Lucid later disputes the report, calling the claims false. After the denial, shares recover some losses, though they still end the day down on the news. The episode highlights how quickly market-moving rumors can affect a public company’s stock and trading activity.
