Lucid Motors is denying a report that it’s weighing submitting for Chapter 11 chapter safety.
Nick Twork, the corporate’s chief communications officer, instructed TechCrunch in a press release that the “rumors are fully false.”
“The corporate has ample liquidity to hold its operations nicely into subsequent 12 months, as not too long ago printed in its final quarterly filings, and it has not fashioned any particular Board committee to discover the eventualities reported at this time,” he stated. “Our focus is on bettering execution, strengthening operations, and positioning Lucid to comprehend the total potential of its know-how, merchandise, and innovation.”
Lucid’s denial comes after its inventory value sunk greater than 50% on Tuesday, its largest intra-day drop ever, according to Bloomberg News. The inventory has recovered from the free fall, and was buying and selling at $4.72 a share as of two:46 p.m. ET, about 14% decrease than its opening value.
The corporate not too long ago named a brand new CEO and has laid off greater than 2,000 workers this 12 months as a part of a sweeping restructuring forward of the anticipated launch of its smaller, extra reasonably priced electrical SUV later this 12 months.
Earlier Tuesday, an electric vehicle blog printed a report citing two unnamed sources who stated the corporate was contemplating both submitting for Chapter 11 chapter safety or going personal on the advice of consulting agency AlixPartners. Twork stated AlixPartners is aiding Lucid on strengthening its operations and “nothing else and has not really useful chapter to administration or the Board.”
AlixPartners has been a go-to consulting agency for struggling electrical automobile firms lately.
Lordstown Motors tapped the agency in 2021 after its CEO and CFO resigned, in an try and restructure its nascent enterprise. The startup finally partnered up with Taiwanese electronics big Foxconn, although that relationship soured and Lordstown Motors went out of enterprise.
Faraday Future additionally introduced in AlixPartners to try and implement recommendations made by its board of administrators within the wake of an inside probe in 2022.
Lucid Motors not too long ago revealed that it delivered 3,953 autos within the second quarter of this year, solely barely greater than it shipped in the identical interval final 12 months. It has traditionally struggled to search out consumers for its luxurious EVs, regardless of their spectacular technological specs. Together with the most recent spherical of layoffs introduced earlier this month, Lucid additionally stated it could get rid of a second manufacturing shift at its Arizona manufacturing facility because it aligns “manufacturing plans with anticipated demand.”
Lucid Motors can also be making an attempt to get a luxurious robotaxi service off the bottom by the tip of this 12 months with companions Uber and Nuro. Uber has committed to buying not less than 35,000 Nuro-equipped Lucid Motors autos for the trouble over the subsequent few years, with 10,000 of these being Gravity SUVs, and 25,000 based mostly on the upcoming midsize EV platform.
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