Lucid Suing Blogger Who Tanked its Stock
In a dramatic escalation of its corporate defense, luxury electric vehicle manufacturer Lucid has issued a formal cease-and-desist letter to the blogger behind the outlet @EV_carba (Electric-Vehicles.com), threatening immediate and severe legal action over reports claiming the automaker is evaluating Chapter 11 bankruptcy or a take-private transaction.
The confrontation became public after Lucid spokesperson Nick Twork confirmed the aggressive pushback on social media.
"$LCID has delivered a cease-and-desist letter to @EV_carba regarding reporting that falsely claimed the company was considering bankruptcy or a take-private transaction. Those claims have been publicly and unequivocally denied, including in an SEC filing."
Market Rollercoaster: Stock Stages Massive Intraday Recovery
The legal counter-offensive triggered a massive roller-coaster session on Wall Street. Following the initial speculative reporting, Lucid's stock plummeted from $5.52 to a frightening session low of $2.46.
However, as news of the legal action and the firm's categorical denial spread, the stock staged a spectacular intraday reversal, surging back to close at $4.62—recovering most of the day's severe losses and restoring investor confidence.
Inside the Legal Ultimatum
A copy of the cease-and-desist letter, signed by Lucid’s Chief Legal Officer & General Counsel Brian K. Tomkiel, outlines the company's fury regarding the rumors. Tomkiel emphasized that the factual premise of the blogger's reporting is entirely manufactured.
"Whether described as a 'recommendation,' an 'option under review,' a 'scenario,' or an alternative allegedly being 'weighed,' the factual premise of your reporting remains the same—that Lucid and AlixPartners were evaluating bankruptcy or a transaction to take the Company private. Lucid unequivocally denies that premise," writes Brian K. Tomkiel, Chief Legal Officer & General Counsel, Lucid Group, Inc.
The legal demand required the blogger to:
- Immediately review the factual accuracy of both articles in light of Lucid’s unequivocal denial.
- Promptly correct or retract the false factual assertions contained in both articles.
- Preserve all documents and electronically stored information (including drafts, notes, texts, and metadata) relating to the preparation and publication of both articles.
Impending Litigation
In an indication of how seriously Lucid is taking the threat to its market valuation, the letter is formally copied to John B. Quinn, the founding partner of the elite global litigation powerhouse Quinn Emanuel Urquhart & Sullivan LLP. The document noted that Lucid is actively "evaluating... all available legal remedies" and demanded a formal, written response by 9:00 a.m. Eastern Time on July 15, 2026.
Industry analysts note that while Lucid has faced severe headwind losses to date, this swift legal counter-strike signals the company's absolute determination to protect its reputation as its highly anticipated SUV models prepare to hit full stride. The quick recovery of the share price to $4.62 indicates that investors were highly reassured by Lucid’s decisive pushback against the bankruptcy narrative.
More by Avery Anderson
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If it’s not true now , most likely it could be not to long from now .Theyvhave mediocre quality , horrible depreciation .I see very low mileage ones with invoices showing owners paid$135,000 -$176,000 and are two treats old .Mileage 950-23,000 miles .Sold for $54k-$64k .That , people , is a huge loss in two years with low miles .But, it’s an ev so , no surprises here , wonder if the original buyers were surprised 🤣🤣🤣🤣🤣🤣