Lucid Just Soared 29% After Calling Bankruptcy Rumors "Completely False." Here's What Its Balance Sheet Actually Shows.
The EV maker's denial sparked a huge one-day bounce. But the balance sheet is what investors should actually be studying.
Overview
It was a wild two days for Lucid (NASDAQ: LCID) shareholders. On Tuesday, a report from an electric vehicle blog, citing two unnamed sources, claimed the luxury EV maker had brought in consulting firm AlixPartners to weigh a Chapter 11 bankruptcy filing or a take-private deal. Shares lost more than half their value at Tuesday's lows, triggering multiple volatility halts, before Lucid's denial helped the stock recover most of the damage. It still closed the day down 16%.
Then came Wednesday. Shares soared about 29% to close at $5.95 -- actually a bit higher than where the stock sat before the report broke.
Details
Lucid called the rumors "completely false" in a statement filed with the SEC on Tuesday. The company also said it "has sufficient liquidity to carry its operations well into next year" and that it hasn't formed any special board committee to explore the scenarios described in the report. AlixPartners, Lucid explained, is helping it improve execution and operations "and nothing else" and hasn't recommended bankruptcy to management or the board.
Source
Originally published at www.fool.com.