Lucid Motors Stock Falls 50 Percent After Bankruptcy Rumor That Company Calls False

Lucid Motors stock fell as much as 50 percent in a single day on July 15, 2026, after a report that restructuring firm AlixPartners had advised the board to consider Chapter 11 bankruptcy or a take-private deal, The Verge reported. The company stated the report was completely false and said it had sufficient free cash flow to operate into 2027.

Lucid confirmed it had hired AlixPartners but said the firm made no recommendations on bankruptcy or a take-private transaction.

Instead, Lucid said AlixPartners was retained to advise on improving execution, strengthening operations and positioning the company to realize the full potential of its technology, products and innovation. The company filed a cease-and-desist letter against the publication, claiming the report caused the stock crash and injured investors and the company directly.

Lucid lost more than $1 billion in the first quarter of 2026.

It conducted two rounds of layoffs this year, cutting 12 percent of staff in February and 18 percent in June. The company also reduced production at its Arizona factory to address high inventory levels and lower costs, and eliminated the chief operating officer position after Marc Winterhoff departed. Shares of Rivian and Polestar also declined after the report on Lucid, The Verge reported.

Lucid’s chief legal officer and general counsel Brian Tomkiel sent the cease-and-desist letter.