Lucid Motors Denied the Bankruptcy Rumors, But That's Not Enough to Make LCID Stock a Buy

Lucid Group (LCID) stock whipsawed yesterday, July 14, amid reports that the company is considering going private or filing for Chapter 11 bankruptcy. LCID fell to an all-time low of $2.37 amid the rumors, and while it recovered after the company categorically denied these reports, it still fell over 16% and closed below $5, which is the SEC’s threshold for penny stocks. LCID stock has since rebounded today, up about 20% in afternoon trading to around $5.50.

Incidentally, if not for the 1-for-10 reverse stock split effective Aug. 29, 2025, Lucid would have been a penny stock anyway. It trades at a tiny fraction of its 2021 highs, when it nearly became a $100 billion market-cap company amid the euphoria around electric vehicle (EV) stocks. Despite the rebound from the lows, Lucid’s market cap is below $2 billion as of yesterday’s closing prices. As for all-time lows, they have been a perennial event for LCID stock, which has closed in the red in every year since its 2021 listing and has been slumping from one record low to another.