Lucid Shares Plunge, Triggering Volatility Halts After Report on Potential Privatization or Chapter 11

According to CNBC, Lucid Group shares fell more than 40% at one point Tuesday and were halted multiple times for volatility after an EV-focused site reported the company was considering going private or filing for Chapter 11 bankruptcy protection. The report said Lucid had asked AlixPartners to review those options and present findings to the board before its next meeting, and that the adviser urged further restructuring in the U.S. and Europe and a focus on the Gravity SUV. AlixPartners declined to comment, while Lucid said the rumors were “completely false,” adding it has sufficient liquidity to operate well into next year and has not formed a special board committee to explore the reported scenarios. The company has recently faced a tougher EV market and regulatory changes under the Trump administration, and said last month it would lay off 18% of its U.S. workforce; it also missed Wall Street expectations for second-quarter deliveries and suspended production guidance in May.