Lucid Dismisses Bankruptcy Rumors After Nasdaq Halts Trading. Here’s Why the Stock Plunged Anyway.
Lucid is working with a restructuring expert, which is never a good sign for a money-losing business with significant debt.
Overview
Shares of Lucid (NASDAQ:LCID) plunged following a rumor that the company was working with restructuring expert AlixPartners. Lucid quickly dismissed the idea that it was preparing for bankruptcy, and the stock recovered much of the ground it had lost. However, the shares still ended the day down by more than 10%. Here's what investors need to know.
When asked about the rumor, Lucid confirmed to Bloomberg that it was working with AlixPartners. The company explained that AlixPartners is helping it improve execution and operations, and nothing more, adding that it "has sufficient liquidity to carry its operations well into next year."
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Originally published at www.fool.com.