Lucid Shares Plunge 40% on Bankruptcy Rumors; Company Denies, Cites Strong Cash Position

U.S. electric vehicle maker Lucid (LCID) saw its stock plunge more than 40% intraday on July 15 after market rumors surfaced that the company might file for bankruptcy protection, triggering volatility trading halts twice before being halted entirely. Lucid swiftly denied the reports, calling them “completely false.” The rumor reportedly originated from a media outlet citing restructuring advisory firm AlixPartners, which allegedly recommended that Lucid’s board consider strategic options including privatization or filing for Chapter 11 bankruptcy protection under U.S. law. In response, Lucid spokesperson Nick Twork stated clearly that AlixPartners had not advised the company to file for bankruptcy and was only assisting with operational efficiency improvements. He also emphasized that Lucid had not formed any board committee specifically tasked with evaluating acquisition or restructuring proposals. Financial data shows that as of the end of Q1 2026, Lucid held approximately $714 million in cash and equivalents, with total liquidity of about $3.2 billion. In April 2026, the company secured an additional $1.05 billion in financing through multiple channels: $550 million in convertible preferred shares from Saudi Arabia’s Public Investment Fund (PIF), a $200 million investment from Uber, and $500 million drawn from a PIF term loan facility. Additionally, Lucid still has access to roughly $2 billion in undrawn loan commitments. Altogether, its total liquidity stands close to $4.7 billion—sufficient, analysts estimate, to fund operations through the end of 2027. Despite this relatively solid cash position, Lucid continues to incur substantial losses. Its net loss in Q1 2026 reached $1.03 billion—roughly triple the same period a year earlier. In 2025, the company delivered 15,800 vehicles while burning through approximately $3.8 billion in free cash flow, equating to a loss of around $240,000 (approximately RMB 1.625 million) per vehicle sold. Wall Street forecasts that Lucid will not achieve positive free cash flow until at least 2030 and expects cumulative losses to reach $6.7 billion by 2028. To address its challenges, Lucid has implemented aggressive cost-cutting measures: in June, it carried out its second round of layoffs within four months, reducing headcount by 18%. Since taking over as CEO, Silvio Napoli has restructured the executive leadership team and abandoned the company’s original 2026 production targets. Since going public via SPAC in 2021, Lucid’s stock once traded near $58 per share but has since fallen more than 90%. Regardless of whether the bankruptcy rumors hold any truth, market confidence in Lucid—a new-energy automaker delivering fewer than 20,000 vehicles annually—is steadily eroding.