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Lucid shares surge 28.8% after CEO denies bankruptcy, take-private rumors
The company said it has sufficient liquidity to fund operations well into next year and will update investors with its Q2 results on Aug. 4.
Lucid Group shares jumped 28.79% to close at $5.95 on Wednesday after the company denied an exclusive report that it was considering bankruptcy or a take-private transaction. Yahoo Finance reports the rally followed investor renewed interest after the denial eased immediate concerns about Lucid's financial outlook.
In a LinkedIn post, CEO Silvio Napoli said the rumors circulating from an electric-vehicles.com article were false, adding that the board did not explore bankruptcy or a transaction to take the company private. Napoli also said Lucid generally does not comment on rumors but that the claims required a direct response.
Napoli said the company has sufficient liquidity to fund operations well into next year, according to the report. The market focus is expected to shift to Lucid's upcoming earnings update, with second-quarter results scheduled for Aug. 4 and a conference call planned after market close.
The article also noted weakened institutional sentiment heading into the denial, citing Insider Monkey data that 23 hedge funds held stakes in Lucid in the first quarter, down from 27 in the prior quarter. Those funds collectively held $59.9 million in stake value, down from $66.86 million quarter over quarter.