LCID Stock Alert: What to Know as Lucid Slams 'Completely False' Bankruptcy Rumors

Lucid (LCID) stock is extending gains on Wednesday as management slammed recent reports that the company is considering Chapter 11 bankruptcy as “completely false.”

As investors cheer the reassurance, LCID is challenging its 20-day moving average (MA), with a decisive break above the $5.67 level expected to boost bullish momentum in the near term. 

That said, Lucid shares remain a disappointing investment in 2026, still down roughly 50% versus the start of this year. 

Lucid Says It Hasn’t Been Advised to Consider Bankruptcy

LCID shares tumbled a day earlier on reports that AlixPartners, which was recently hired by the EV company to streamline operational efficiency, had advised the board to consider a Chapter 11 filing. 

Earlier this morning, however, Lucid’s head of communications, Nick Twork, pushed back, saying AlixPartners is assisting with “improving execution, strengthening operations, and positioning the company to realize the full potential of its technology, products and innovation.”

The turnaround effort follows Lucid’s recent executive restructuring and decision to cut about 18% of its U.S. workforce — a move expected to result in roughly $158 million in annualized cost savings.

Should You Load Up on LCID Shares Into Strength Today?

For long-term investors, the fundamental bull case for Lucid stock rests on the company’s fortified balance sheet and substantial sovereign backing. 

The EV company ended its most recent quarter with $3.2 billion in total liquidity, which was further bolstered by a massive $1.05 billion capital raise in April featuring Uber (UBER) and Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund (PIF). 

With the PIF holding a commanding 57% stake, Newark-headquartered Lucid offers a financial safety net that most EV startups lack. 

On Wednesday, management reiterated that LCID has sufficient capital to fund operations well into next year as it scales production of the Gravity sports utility vehicle (SUV). 

How Wall Street Recommends Playing Lucid Group

Investors can also take heart from the fact that Wall Street analysts remain largely positive on LCID stock for the next 12 months. 

While the consensus rating on Lucid sits at “Hold” only, the mean price target of about $10.41 signals potential upside of nearly 90% from current levels.