Lucid Group NASDAQ:LCID shares jumped about 10% on Thursday again after Chief Executive Silvio Napoli publicly rejected reports that the electric vehicle maker was considering bankruptcy or a take-private transaction.
Lucid also filed an 8-K stating that restructuring adviser AlixPartners was hired to support operational improvements rather than evaluate bankruptcy, restructuring, or delisting options. The filing followed media reports that had sparked multiple trading halts earlier this week and sent the stock sharply lower.
Napoli said Lucid has sufficient liquidity to fund operations into next year, helping ease concerns over the company's financial position. The rebound may also have been supported by short covering after heavy selling during the previous sessions. Even with Thursday's gain, Lucid remains well below its 52-week high.
Morgan Stanley maintained its Underweight rating and $5 price target, citing ongoing capital concerns, while Cantor Fitzgerald reiterated that the company's liquidity position remains intact. Investors are now expected to focus on Lucid's Aug. 4 second-quarter earnings report for updated cash figures and any changes to production guidance.