Lucid Group Inc (NASDAQ:LCID) shares are rebounding on Thursday after the company mounted an aggressive public pushback against a report that sent the stock into a sharp decline during Tuesday’s session. Here’s what you should know.
- Lucid Group shares are powering higher. What’s behind LCID gains?
Lucid Fights Back With Cease-and-Desist, SEC Filing and CEO Statement
The turnaround in the stock traces back to an escalating series that carried into Wednesday morning. After the original Eletric-Vehicles.com story alleged that AlixPartners had been tasked with presenting the board a range of options including a potential bankruptcy filing and a take-private transaction, Lucid’s legal department moved swiftly.
Chief Legal Officer Brian Tomkiel dispatched a cease-and-desist letter directly to the publication’s founder Cláudio Afonso demanding both articles be reviewed for accuracy and any false statements corrected or pulled entirely. The letter drew a direct line between the reporting and the market destruction that followed, noting the share price collapsed from an opening print of $5.51 to an intraday floor of $2.37, a freefall exceeding 55% that repeatedly tripped circuit breakers.
The company’s communications chief Nick Twork amplified the response on X, confirming the cease-and-desist had been delivered and pointing to a same-day SEC filing in which Lucid formally and on the record rejected the bankruptcy and take-private claims at the regulatory level, a step that carries considerably more weight than a standard press denial.
CEO Silvio Napoli then added his own voice. In a LinkedIn post addressed directly to the situation, the CEO said the gap between what was reported and what actually occurred inside the company was wide enough to break from the usual practice of ignoring rumor entirely. He said the board convened no special committee, entertained no bankruptcy scenario and considered no path toward taking the company off public markets.
Outside advisors are on the premises for one reason only, he wrote, which is to help sharpen how the business runs day-to-day. Any suggestion they brought a more drastic recommendation to leadership is, in his words, simply not true. Napoli closed by pointing investors toward the Aug. 4 earnings call as the venue where he plans to lay out a fuller picture of where the company stands.
With the lines of defense now on the record and a regulatory filing backing them up, the market appears to be concluding that Tuesday’s selloff went far beyond what the facts warranted.
LCID Shares Are Recovering
LCID Price Action: Lucid shares were up 6.55% at $6.34 at the time of publication on Thursday, according to Benzinga Pro.
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