Lucid Motors denies report it’s considering bankruptcy

Lucid Motors is denying a study that it’s weighing filing for Chapter 11 bankruptcy protection.

Nick Twork, the company’s main communications officer, told TechCrunch successful a connection that the “rumors are wholly false.”

“The institution has capable liquidity to transportation its operations good into adjacent year, arsenic precocious published successful its past quarterly filings, and it has not formed immoderate peculiar Board committee to research the scenarios reported today,” helium said. “Our absorption is connected improving execution, strengthening operations, and positioning Lucid to recognize the afloat imaginable of its technology, products, and innovation.”

Lucid’s denial comes aft its banal terms sunk much than 50% connected Tuesday, its biggest intra-day driblet ever, according to Bloomberg News. The banal has recovered from the escaped fall, and was trading astatine $4.72 a stock arsenic of 2:46 p.m. ET, astir 14% little than its opening price.

The institution precocious named a caller CEO and has laid disconnected much than 2,000 employees this twelvemonth arsenic portion of a sweeping restructuring up of the expected motorboat of its smaller, much affordable electrical SUV aboriginal this year.

Earlier Tuesday, an electric conveyance blog published a study citing 2 unnamed sources who said the institution was considering either filing for Chapter 11 bankruptcy extortion oregon going backstage connected the proposal of consulting steadfast AlixPartners. Twork said AlixPartners is assisting Lucid connected strengthening its operations and “nothing other and has not recommended bankruptcy to absorption oregon the Board.”

AlixPartners has been a go-to consulting steadfast for struggling electrical conveyance companies successful caller years.

Lordstown Motors tapped the steadfast successful 2021 aft its CEO and CFO resigned, successful an effort to restructure its nascent business. The startup yet partnered up with Taiwanese electronics elephantine Foxconn, though that narration soured and Lordstown Motors went retired of business.

Faraday Future besides brought successful AlixPartners to try and instrumentality recommendations made by its committee of directors successful the aftermath of an interior probe successful 2022.

Lucid Motors precocious revealed that it delivered 3,953 vehicles successful the second 4th of this year, lone somewhat much than it shipped successful the aforesaid play past year. It has historically struggled to find buyers for its luxury EVs, contempt their awesome technological specs. Along with the latest circular of layoffs announced earlier this month, Lucid besides said it would destruct a 2nd accumulation displacement astatine its Arizona mill arsenic it aligns “production plans with anticipated demand.”

Lucid Motors is besides trying to get a luxury robotaxi work disconnected the crushed by the extremity of this twelvemonth with partners Uber and Nuro. Uber has committed to buying astatine slightest 35,000 Nuro-equipped Lucid Motors vehicles for the effort implicit the adjacent fewer years, with 10,000 of those being Gravity SUVs, and 25,000 based connected the upcoming midsize EV platform.