Lucid Motors denies report of filing for Chapter 11 bankruptcy protection.
“The rumors are completely false,” the company’s chief communications officer, Nick Twork, told TechCrunch.
“The company, as recently published in its latest quarterly reports, has sufficient liquidity to carry out its operations well into next year and has not established any special Board committees to examine the scenarios reported today,” it said. “We are focused on improving execution, strengthening operations and positioning Lucid to realize the full potential of its technology, products and innovations.”
Lucid’s denial comes after its share price sank more than 50% on Tuesday, its biggest intraday drop ever. According to Bloomberg News. The stock recovered from its freefall and was trading at $4.72 a share at 2:46 p.m. ET, down nearly 14% from its opening price.
The company recently appointed a new CEO and laid off more than 2,000 workers this year as part of a sweeping restructuring ahead of the expected launch of a smaller, more affordable electric SUV later this year.
On Tuesday, moment electric car blog published a report citing two sources who said the company is considering filing for Chapter 11 bankruptcy protection or going private at the recommendation of consulting firm AlixPartners. Twork said AlixPartners was helping Lucid strengthen its operations and “did nothing else and did not recommend bankruptcy to management or the Board.”
AlixPartners has been a consulting firm battling electric car companies in recent years.
Lordstown Motors launched the firm in 2021 after its CEO and CFO resignedan attempt to rebuild his fledgling business. The startup eventually partnered with Taiwanese electronics giant Foxconn, though that relationship soured and Lordstown Motors went out of business.
Faraday Future also brought in AlixPartners try to follow the recommendations It was done by the board after an internal investigation in 2022.
Lucid Motors recently announced that it delivered 3,953 vehicles the second quarter of this yearslightly more than what was shipped during the same period last year. Despite its impressive technological features, it has historically struggled to find buyers for its luxury electric vehicles. Along with the latest phase of layoffs announced earlier this month, Lucid said it will eliminate a second production shift at its Arizona factory as it “aligns production plans with anticipated demand.”
Lucid Motors is also working with partners Uber and Nuro to get the luxury robotaxi service off the ground by the end of this year. There is Uber decided to buy At least 35,000 Nuro-equipped Lucid Motors vehicles over the next few years, 10,000 of them Gravity SUVs and 25,000 based on the upcoming midsize EV platform.
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