Lucid Group (NASDAQ:LCID) Shares Down 16.2% - Here's What Happened

Key Points

• Lucid Group shares plunged 16.2% in mid-day trading after reports surfaced that the EV maker was considering bankruptcy or a take-private deal. The company denied the claims as false, and the stock was highly volatile, with multiple trading halts.
• Despite Lucid’s rebuttal, the stock remained under heavy pressure, briefly falling to as low as $2.37 before recovering some losses. Trading volume surged far above normal, reflecting intense investor reaction.
• Sentiment around the stock is also being weighed down by weak analyst sentiment and legal overhang, including a securities class action promotion. Several firms rate the stock Hold or Sell, with an average analyst rating of “Reduce.”

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report)'s share price fell 16.2% during mid-day trading on Tuesday . The company traded as low as $2.37 and last traded at $4.62. Approximately 153,840,945 shares traded hands during mid-day trading, an increase of 1,057% from the average daily volume of 13,301,884 shares. The stock had previously closed at $5.51.

Trending Headlines about Lucid Group

Here are the key news stories impacting Lucid Group this week:

• Negative Sentiment: Lucid’s shares fell sharply after reports claimed it was considering bankruptcy or a take-private deal, though the company denied the allegations as false. Lucid rejects take-private, bankruptcy report after shares plunge
• Negative Sentiment: Trading in LCID was halted multiple times because of extreme volatility after the bankruptcy rumors hit the market. Lucid stock plunges after report that EV maker is considering bankruptcy, which company denies
• Negative Sentiment: Investing.com reported that Lucid pared earlier losses after rebuffing the bankruptcy rumors, but the stock remained under significant selling pressure. Lucid shares pare losses after rebuffing bankruptcy rumors
• Negative Sentiment: Lucid also faces fresh investor-lawyer promotions tied to an existing securities class action, which adds to the overhang on sentiment. Kaplan Fox Alerts Lucid Group, Inc. (LCID) Investors to Seek Leadership in a Securities Fraud Lawsuit by July 28, 2026

Analyst Ratings Changes

Several analysts have weighed in on the stock. Cantor Fitzgerald reiterated a "neutral" rating and issued a $14.00 price objective on shares of Lucid Group in a research note on Monday, May 4th. TD Cowen lowered their target price on shares of Lucid Group from $10.00 to $7.00 and set a "hold" rating on the stock in a report on Wednesday, May 6th. Morgan Stanley set a $5.00 price target on shares of Lucid Group in a research report on Wednesday, May 6th. Royal Bank Of Canada reissued a "sector perform" rating and set a $7.00 price target (down from $8.00) on shares of Lucid Group in a research report on Monday. Finally, Robert W. Baird set a $6.00 price objective on Lucid Group in a research note on Wednesday, May 6th. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Lucid Group has an average rating of "Reduce" and an average target price of $9.56.

Lucid Group Price Performance

The company has a quick ratio of 0.48, a current ratio of 1.02 and a debt-to-equity ratio of 3.00. The stock has a market capitalization of $1.80 billion, a price-to-earnings ratio of -0.35 and a beta of 0.83. The business's 50 day simple moving average is $5.80 and its 200-day simple moving average is $8.41.

Institutional Trading of Lucid Group

Large investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC raised its position in Lucid Group by 1,574.7% during the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company's stock valued at $28,000 after purchasing an additional 2,740 shares in the last quarter. Leonteq Securities AG bought a new position in shares of Lucid Group in the 4th quarter valued at $67,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Lucid Group during the 4th quarter worth $77,000. Eurizon Capital SGR S.p.A. bought a new stake in shares of Lucid Group during the 4th quarter worth $86,000. Finally, HITE Hedge Asset Management LLC bought a new stake in shares of Lucid Group during the 3rd quarter worth $212,000. Institutional investors and hedge funds own 75.17% of the company's stock.

Lucid Group Company Profile

Lucid Group, Inc is a California-based electric vehicle manufacturer specializing in the design, engineering and production of luxury electric sedans. Its flagship model, the Lucid Air, features a proprietary battery and powertrain architecture that emphasizes energy efficiency, extended driving range and high performance. In addition to passenger vehicles, Lucid offers charging solutions and software-enabled services aimed at optimizing the ownership experience and accelerating adoption of zero-emission transportation.

The company was founded in 2007 under the name Atieva, initially focusing on battery technology and electric powertrains for other automakers before transitioning to its own branded vehicles.

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