Lucid Files Cease-and-Desist After 50% Stock Plunge on Bankruptcy Report
Updated
Updated · The Verge · Jul 15
Lucid Files Cease-and-Desist After 50% Stock Plunge on Bankruptcy Report
3 articles · Updated · The Verge · Jul 15
Summary
Lucid moved against EV publication EV after a report saying AlixPartners urged its board to consider Chapter 11 or a take-private deal sent the stock down as much as 50%.
Lucid called the report “completely false,” said it has enough free cash flow to operate into next year, and said AlixPartners was hired to improve execution and operations—not to recommend bankruptcy.
A legal letter from Lucid said the article caused serious injury to investors and the company, while no other outlet had confirmed EV’s bankruptcy claim.
The selloff spread to Rivian and Polestar, reflecting broader investor anxiety over EV-only makers already under pressure from slowing demand, policy shifts and dependence on deep-pocketed backers.
Lucid’s denial landed against a weak backdrop: it lost more than $1 billion in the first quarter, cut 12% of staff in February and another 18% in June, and reduced Arizona production.