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 continue its operations in the coming year, as recently disclosed in its latest quarterly filings, and has not formed any special committee of the Board of Directors to investigate the scenarios mentioned 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 share price fell more than 50% on Tuesday, its biggest intraday drop ever. according to Bloomberg News. The stock has recovered from its freefall and was trading at $4.72 per share as of 2:46 p.m. ET, about 14% lower than its opening price.
The company recently named a new chief executive 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 on Tuesday, one electric vehicle blog published a report citing two unnamed sources who said the company is considering either filing for Chapter 11 bankruptcy protection or going private at the recommendation of consulting firm AlixPartners. Twork said AlixPartners is helping Lucid strengthen its business and “nothing else and has not recommended bankruptcy to management or the Board of Directors.”
AlixPartners has been an advisory firm to struggling electric vehicle companies in recent years.
Lordstown Motors took over the company in 2021 after its CEO and CFO resignedin an attempt to restructure its fledgling business. The startup eventually partnered with Taiwanese electronics giant Foxconn, though that relationship soured and Lordstown Motors folded.
Faraday Future also brought AlixPartners on board try to implement recommendations made by its board following an internal investigation in 2022.
Lucid Motors recently revealed that it delivered 3,953 vehicles in the second quarter of this year, only slightly more than it shipped in the same period last year. It has historically struggled to find buyers for its luxury EVs, despite their impressive tech specs. Along with the latest round of layoffs announced earlier this month, Lucid also said it will eliminate a second production shift at its Arizona plant as it aligns “production plans with anticipated demand.”
Lucid Motors is also looking to launch a luxury robotaxi service by the end of this year with partners Uber and Nuro. Uber has committed to buying at least 35,000 vehicles equipped with Nuro Lucid Motors for the effort over the next few years, with 10,000 of them being Gravity SUVs and 25,000 based on the upcoming mid-size EV platform.
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