Lucid Group (LCID) shares surged more than 20% on Wednesday, fully reversing a dramatic selloff triggered by a disputed bankruptcy report. The stock had plunged as much as 50% on Tuesday after reports claimed consulting firm AlixPartners recommended Lucid consider filing for bankruptcy or narrowing its business focus.
Disputed report sparks panic
The Tuesday decline was one of the steepest single-day drops for the electric-vehicle maker, wiping out billions in market value. The report, which cited unnamed sources, suggested that AlixPartners, hired to advise Lucid, had presented options including a potential bankruptcy filing. However, Lucid quickly disputed the claims, calling them inaccurate and misleading.
Recovery and market response
By Wednesday, buyers stepped in, pushing the stock back to its pre-panic level. The rapid recovery indicates that many investors viewed Tuesday's selloff as an overreaction to unsubstantiated rumors. Lucid has not commented further on the report or its relationship with AlixPartners. The company continues to face production and demand challenges in the competitive EV market, but the bankruptcy speculation appears to have been dismissed by the market for now.