Why Lucid Group Plunged Today
Shares of luxury electric vehicle company Lucid Group (NASDAQ: LCID) were on a roller-coaster Tuesday, plunging as much as 57% before substantially recovering to a "mere" 16% decline at the end of the trading day.
Lucid has been under severe pressure recently, as enthusiasm for electric vehicles has tempered, and it has also experienced technical problems with its new Gravity SUV. In June, the company announced it would lay off another 20% of its workforce and close a production line, on top of a 12% workforce cut earlier this year. Last week, the company drew on an $800 million term loan to enhance liquidity.
Today, a source familiar with Lucid told an industry news outlet that the company had been advised to file for Chapter 11 bankruptcy; however, the company later disputed that report, leading to the big recovery.
Source Fool.com
