Shares of Lucid Group surged 20.45% on Wednesday, trading at $5.57 as of 12:06 p.m. EDT, up 95 cents on the day, as the electric vehicle maker continued rebounding from a stunning collapse a day earlier, when bankruptcy rumors briefly sent the stock crashing more than 50%.

Wednesday's rally builds on a sharp reversal that began late Tuesday, after Lucid's stock had plunged intraday from $5.51 to as low as $2.37, a decline of more than 50%, before closing at $4.62 on record trading volume exceeding 155 million shares. The stock's dramatic swings triggered multiple trading halts on the Nasdaq due to extreme volatility.

A Report That Triggered the Selloff

Tuesday's crash began after a publication covering the electric vehicle industry reported that Lucid had hired restructuring advisers and was reportedly considering either going private or filing for Chapter 11 bankruptcy protection. Bloomberg separately reported that Lucid had hired AlixPartners, a well-known restructuring specialist, adding to the intensity of the selloff.

Lucid Pushes Back Forcefully

Lucid moved quickly to dispute the reports, issuing a statement disputing the central claims and emphasizing its current financial position.

"The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today," Lucid said in its statement.

The company went further on Wednesday, releasing a formal letter to the editor of the publication........

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