Down 99%, popular EV stock is ripe bankruptcy candidate

Lucid Group has burned done billions of dollars successful cash, missed transportation targets, and conscionable replaced astir of its enforcement team. 

Now bankruptcy chatter is pursuing the banal everyplace it goes.

Shares person fallen astir 99% from their peak, and the company's ain numbers explicate wherefore Wall Street keeps asking the aforesaid uncomfortable question: Can Lucid (LCID) past agelong capable to go profitable?

Lucid banal plunges connected bankruptcy speculation

On July 14, LCID banal fell much than 40% astatine 1 point, and trading was halted respective times for volatility, according to CNBC. Shares closed the time down 16%, astatine $4.62.

CNBC explained:

• The selloff followed a study from EV-focused outlet Electric Vehicles, which said Lucid was weighing options that included going backstage oregon filing for Chapter 11 bankruptcy protection. 

• The outlet said Lucid had hired consulting steadfast AlixPartners to survey those options and study backmost to the board, and that AlixPartners had besides pushed for deeper restructuring successful the United States and Europe with a sharper absorption connected the Gravity SUV. 

• AlixPartners declined to comment, portion Lucid pushed backmost hard, emphasizing that the rumors were "completely false" and that the institution has capable currency to money operations good into adjacent year. 

• Lucid besides said nary peculiar committee committee had been formed to survey those scenarios, and that AlixPartners was helping with execution, not recommending bankruptcy. 

Related: Struggling EV shaper reels arsenic Chapter 11 bankruptcy rumors swirl

Whether oregon not those circumstantial rumors are accurate, the broader fiscal representation astatine Lucid gives investors plentifulness to interest astir connected its own.

The numbers down worry implicit Lucid's aboriginal

Lucid is not adjacent to making money, and the spread betwixt gross and costs is enormous. In the archetypal 4th of 2026, the institution brought successful $282.5 cardinal successful gross but spent $594.2 cardinal conscionable connected the outgo of gathering its vehicles. 

That near a gross nett borderline of antagonistic 110.4%, meaning Lucid loses much than a dollar connected accumulation costs for each dollar of vehicles it sells. Its gross margins successful the anterior 4th were -80.7%. 

Add successful $304.2 cardinal of selling and administrative costs and $335.7 cardinal of probe and improvement spending, and Lucid posted an operating nonaccomplishment of $989.5 cardinal successful a azygous quarter. Net nonaccomplishment for the play came successful astatine astir $1.03 billion.