Lucid Motors Denies Bankruptcy Rumors
Lucid Motors is pushing back against a report that the electric vehicle maker is considering Chapter 11 bankruptcy protection. Nick Twork, the company’s chief communications officer, told TechCrunch that the ‘rumors are completely false.’ The company stated it has sufficient liquidity to carry operations well into next year, as per its latest quarterly filings, and has not formed any special Board committee to explore bankruptcy scenarios. ‘Our focus is on improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation,’ Twork said.
Stock Plunge and Financial Turmoil
Lucid’s denial came after its stock price plunged more than 50% on Tuesday, marking its biggest intra-day drop ever. The stock later recovered, trading at $4.72 a share as of 2:46 p.m. ET on the same day, roughly 14% lower than its opening price. The company recently named a new CEO and has laid off over 2,000 employees this year as part of a sweeping restructuring. These changes precede the expected launch of a smaller, more affordable electric SUV later this year.
Report Details and AlixPartners Involvement
Earlier Tuesday, an article citing two unnamed sources claimed Lucid was considering either Chapter 11 bankruptcy protection or going private, on the recommendation of consulting firm AlixPartners. Twork clarified that AlixPartners is assisting Lucid in strengthening its operations ‘and nothing else,’ and that the firm has not recommended bankruptcy to management or the board. AlixPartners has a history with struggling EV companies: Lordstown Motors used the firm in 2021 after its CEO and CFO resigned, and Faraday Future brought in AlixPartners to investigate board allegations in 2022. Lordstown eventually went out of business after a failed partnership with Foxconn.
Restructuring and Production Adjustments
Lucid revealed it delivered 3,953 vehicles in the second quarter, only slightly more than it shipped in the same period last year. The company has historically struggled to find buyers for its luxury EVs. Alongside the recent layoffs, Lucid said it would eliminate a second production shift at its Arizona factory to align production plans with anticipated demand.
Robotaxi Ambitions
Despite the challenges, Lucid is pushing forward with plans to launch a luxury robotaxi service by the end of this year, in partnership with Uber and Nuro. Uber has placed orders for at least 35,000 Nuro-equipped Lucid vehicles over the next few years, comprising 10,000 Gravity SUVs and 25,000 based on the upcoming midsize EV platform.