Lucid Group Inc. shares rebounded on Thursday after the company mounted an aggressive public pushback against a report alleging the electric vehicle manufacturer was considering bankruptcy or going private. The stock recovery followed a volatile session where shares dropped significantly, with the price collapsing from an opening print of $5.51 to an intraday floor of $2.37, a decline exceeding 55% that repeatedly tripped circuit breakers. CEO Silvio Napoli and the legal team moved swiftly to refute the claims, emphasizing the company has sufficient liquidity to fund operations well into next year.

CEO Denies Restructuring Claims

Napoli stated on LinkedIn that the reports were "so far from the facts" that they required a direct response. He confirmed that the Board has not convened a special committee, entertained no bankruptcy scenario, and considered no path toward taking the company private. The CEO clarified that outside advisors have not advised the company to file for bankruptcy, and reports of any such advice are untrue. He noted that advisors are present solely to help sharpen business operations, not to recommend drastic measures. Napoli directed investors to the Aug. 4 earnings call for further details.

Company Response and Legal Action

Chief Legal Officer Brian Tomkiel dispatched a cease-and-desist letter to the publication behind the report, demanding accuracy and the removal of false statements. The letter highlighted the market destruction caused by the reporting. Chief Communications Officer Nick Twork confirmed the delivery of the cease-and-desist letter and pointed to a same-day SEC filing where Lucid formally rejected the bankruptcy and take-private claims. The company engaged AlixPartners to assist with improving execution and strengthening operations, not to advise on bankruptcy.

Prediction Markets and Stock Performance

Despite the denial, cryptocurrency bettors had previously increased the odds that Lucid might file for bankruptcy this year. Polygon-based Polymarket currently prices the odds at 46%, up 9 percentage points in a day and 12 percentage points from last week. The jump in possibility followed the initial report suggesting the California-headquartered company might narrow its focus to the Gravity SUV and pause expansion into additional European markets due to quality issues affecting sales.

Year-to-date, Lucid stock has fallen nearly 44% to just under $6 per share. For the second quarter of 2026, the automaker produced 4,774 vehicles and delivered 3,953 units, amid a series of changes in its leadership.

Lucid Group, Inc. (NASDAQ: LCID) shares surged 19.81% to $5.54 on Wednesday, reversing a sharp decline from the previous session. The stock had fallen more than 16% on Tuesday amid bankruptcy concerns, dropping almost 60% intraday from an open of $5.45 to a low of $2.37 before trimming losses to close at $4.65.

The rebound suggests the stock may have found support at the $4.65 level, which previously acted as a floor in June. Support represents a concentration of buy orders from investors and traders. When a stock holds above this level at the close, it indicates that buyers remain active, preventing a sustained breakdown.

Breaking support is typically a bearish signal, as it implies that demand has evaporated, forcing sellers to lower prices to attract buyers. However, Tuesday's price action showed that buyers were present but likely waiting on the sidelines. They re-entered the market late in the session to push the stock back above the critical threshold.

Traders often prioritize closing prices over intraday lows because the final price reflects the equilibrium of supply and demand. The strong reversal from the session lows indicates that the worst of the selling pressure may have passed for Lucid.

LCID Stock Price Activity