Lucid Motors is denying a report that it’s weighing 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 published in its last quarterly filings, 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 sunk more than 50% on Tuesday, its biggest intra-day drop ever, according to Bloomberg News. The stock has recovered from the free fall, and was trading at $4.72 a share as of 2:46 p.m. ET, about 14% lower than its 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 assisting Lucid on strengthening its operations and “nothing else and has not recommended bankruptcy to management or the Board.”
AlixPartners has been a go-to consulting firm for struggling electric vehicle companies in recent years.
Lordstown Motors tapped the firm in 2021 after its CEO and CFO resigned, in an attempt to restructure its nascent business. The startup ultimately partnered up with Taiwanese electronics giant Foxconn, though that relationship soured and Lordstown Motors went out of business.
Faraday Future also brought in AlixPartners to try and implement recommendations made by its board of directors in the wake of an internal probe 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 technological specs. Along with the latest round of layoffs announced earlier this month, Lucid also said it would eliminate a second production shift at its Arizona factory as it aligns “production plans with anticipated demand.”
Lucid Motors is also trying to get a luxury robotaxi service off the ground 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 those being Gravity SUVs, and 25,000 based on the upcoming midsize EV platform.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sean O'Kane Sr. Reporter, Transportation
Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.
You can contact or verify outreach from Sean by emailing sean.okane@techcrunch.com or via encrypted message at okane.01 on Signal.
November 4 Boston Last chance to save up to $190 on TechCrunch Founder Summit. Join 1,000+ founders and VCs at all stages for real-world scaling insights and connections that move the needle.Savings end June 26, 11:59 p.m. PT.
Most Popular Satya Nadella has issued a shocking warning to companies using AI Julie Bort
The wildest allegations in Apple’s trade secrets lawsuit against OpenAI Sarah Perez
Anthropic starts localizing Claude pricing for India, its biggest market after the US Jagmeet Singh
Meta removes controversial AI feature on Instagram after backlash Lucas Ropek
Apple sues OpenAI over alleged trade secret theft Sarah Perez
Elon Musk praises Mythos/Fable, promises not to ‘cut off’ Anthropic Julie Bort
Instagram users: Here’s how to stop Meta’s AI from using your photos Lauren Forristal
