Lucid Group NASDAQ:LCID shares rose about 15% on Wednesday after the electric vehicle maker rejected reports suggesting it was considering bankruptcy or a move to go private.
Lucid said the claims were "completely false." Chief Communications Officer Nick Twork said the company has sufficient liquidity to support operations well into next year and has not established any special board committee to evaluate the scenarios described in the reports. He added that consulting firm AlixPartners is working with Lucid on operational improvements and not on any bankruptcy-related matters.
Lucid ended the first quarter of 2026 with about $714 million in cash and roughly $3.2 billion in total liquidity. Earlier this year, the company also secured approximately $1.05 billion in new funding backed by Saudi Arabia's Public Investment Fund and Uber, strengthening its financial position.
Despite the company's denial, Lucid continues to face challenges in expanding demand for its electric vehicles. While the Lucid Air sedan has earned strong reviews, sales volumes have remained limited. The company is counting on its Gravity SUV and a recently announced agreement to supply 35,000 autonomous vehicle-ready models to Uber to support future growth as it works to increase production and customer demand.