Lucid formally denies bankruptcy rumors after stock halved. Midsize Cosmos SUV, due by end-2026, is the make-or-break product in a cash-burning race.
Lucid Motors filed a document with the SEC on Tuesday denying two articles that said the company was weighing bankruptcy or a take-private deal. The EV maker sent a cease-and-desist letter to EVs.com, which published the reports. Cláudio Afonso, founder of the site's parent company CARBA, told Business Insider the firm had responded but declined further comment.
CEO Silvio Napoli, who took over June 1, posted on LinkedIn that the board never explored those scenarios. "The Board did not explore either scenario. Period." He added that his priority was turning the company around. Nick Twork, Lucid's communications chief, posted on X that the rumors were false and that the company has enough liquidity to run into next year, repeating disclosures from the last quarterly filing.
The stock swung sharply. LCID opened Tuesday at $5.53, slid to around $2.40 at midday, then recovered more than 18% by Wednesday's close.
Lucid confirmed it hired AlixPartners, a turnaround advisory firm. The company said the firm is focused on improving operations and execution, not preparing for bankruptcy. "My priority is clear: turn this company around," Napoli wrote.
Still, the cash burn is heavy. Lucid lost more than $1 billion last quarter. It ended the period with $3.2 billion in total liquidity. After subsequent financing, that figure rises to about $4.7 billion on a pro forma basis, enough to fund operations into 2027, the company said.
Two rounds of layoffs have hit this year: a 12% reduction in February and an 18% cut in June. The chief operating officer role was eliminated after Marc Winterhoff left. CFO Taoufiq Boussaid departed in July.
Lucid's current products are both priced at the high end. The Air sedan and Gravity SUV compete in luxury segments. Deliveries came in at 3,953 last quarter, below an analyst estimate of about 5,000. Lucid is now offering 0% financing for up to six years on the 2026 Gravity.
The Cosmos midsize SUV is the vehicle that could change the revenue trajectory. Production is expected to start by the end of 2026 on a new platform that can support vehicles starting below $50,000. That price point would put Lucid in the most contested part of the US auto market.
Rivian began delivering its R2 in June. Tesla continues to expand the Model Y lineup. The Cosmos will also compete against electric SUVs from Toyota, Ford, Hyundai, and Chevrolet. The gas-powered alternatives are even more entrenched. The Honda CR-V was the best-selling SUV in the first half of 2025. Toyota's redesigned RAV4 faces tight supply and strong demand.
Lucid has outlined two more vehicles beyond the Cosmos: a rugged SUV called the Earth and a purpose-built robotaxi called the Lunar. Both depend on the Cosmos platform first.
The company's liquidity target covers operations into 2027. The Cosmos launch is scheduled for the end of 2026.
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