Lucid Denies Bankruptcy Rumors as Stock Hits Record Low
EV maker Lucid saw its stock crater over 50% intraday before recovering after the company publicly called bankruptcy talk 'completely false.'
Lucid Group's stock plunged more than 50% intraday Thursday, crashing to a record low after bankruptcy rumors swept through markets and rattled investors in the embattled electric vehicle maker. The sell-off was swift and severe, erasing a substantial portion of the company's already diminished market value before a rebound took hold.
The company moved quickly to contain the damage, issuing a direct denial and stating that bankruptcy speculation was "completely false." The clarification helped stabilize the stock, which pared the bulk of its earlier losses — though shares remained under significant pressure following the episode.
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The incident underscores the fragile sentiment surrounding Lucid, which has faced persistent questions about its cash burn, production targets, and path to profitability in a brutally competitive EV landscape. Even with the denial, the speed and scale of the intraday drop signals that investor confidence in the brand remains deeply shaken.
Lucid has attracted attention in recent years both for its high-end Air sedan and for its financial backing from Saudi Arabia's Public Investment Fund, which has served as a critical lifeline. Whether that support is enough to reassure markets long-term remains an open question as the broader EV sector grapples with slowing demand and tightening capital conditions.
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