Lucid Motors denies a report that it is considering filing for Chapter 11 bankruptcy protection.
Nick Twork, the company’s chief communications officer, told TechCrunch in a statement that “the rumors are completely false.”
“The company has sufficient liquidity to carry its operations well into next year, as recently disclosed in its last quarterly reports, and it has not formed any special board committee to explore the scenarios reported today,” he said. “Our focus is on improving execution, strengthening operations and positioning Lucid to realize the full potential of its technology, products and innovation.”
Lucid’s denial comes after its stock price fell more than 50% on Tuesday, its biggest intraday drop ever, according to Bloomberg News. The stock has recovered from the freefall and was trading at $4.72 per share. stock at 2:46 p.m. ET, about 14% lower than the opening price.
The company recently named a new CEO and has laid off more than 2,000 employees this year as part of a sweeping restructuring ahead of the expected launch of its smaller, more affordable electric SUV later this year.
Earlier Tuesday, an electric vehicle blog published a report citing two unnamed sources who said the company was considering either filing for Chapter 11 bankruptcy protection or going private on the recommendation of consulting firm AlixPartners. Twork said AlixPartners is helping Lucid strengthen its operations and “nothing else and has not recommended bankruptcy to management or the board.”
In recent years, AlixPartners has been a popular consulting firm for struggling electric car companies.
Lordstown Motors spun off the firm in 2021 after its CEO and CFO stepped down, in an effort to restructure its nascent business. The startup ultimately partnered with Taiwanese electronics giant Foxconn, though that relationship soured and Lordstown Motors went bankrupt.
Faraday Future also brought in AlixPartners to try to implement recommendations from the board in the wake of an internal investigation in 2022.
Lucid Motors recently revealed that it delivered 3,953 vehicles in the second quarter of this year, just slightly more than it shipped in the same period last year. It has historically struggled to find buyers for its luxury electric cars despite their impressive tech specs. Along with the latest round of layoffs announced earlier this month, Lucid also said it would eliminate another production shift at its Arizona plant as it adjusts “production plans with expected demand.”
Lucid Motors is also trying to get a luxury robotaxi service up and running by the end of this year with partners Uber and Nuro. Uber has committed to buying at least 35,000 Nuro-equipped Lucid Motors vehicles for the effort over the next few years, with 10,000 of them Gravity SUVs and 25,000 based on the upcoming mid-size EV platform.
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