They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.”
Stock Plunge and Recovery
Lucid also directly blamed the report for prompting a sell-off of its shares, noting prices fell from $5.51 to as low as $2.37, causing serious injury to a number of investors.
The stock shed more than half its value at Tuesday's intraday lows and was halted several times for volatility before the denial pared the damage, leaving it down about 16 percent at the close.
However, the recovery came fast.
Shares rocketed 28.8 percent on Wednesday to close at $5.95, slightly above where they traded before the report broke, on volume of 55.6 million shares, roughly 169 percent above the three-month average.
The rebound stretched into a second day, with the stock climbing another 12 percent on Thursday to trade around $6.69, back above its 50-day moving average for the first time since the rumors surfaced.
Regardless of where the truth lies, it’s obvious that things are not going that well for Lucid.
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In June, it said it was laying off 18 percent of its US employees, just four months after a separate round of layoffs cut its local workforce by 12 percent.
