Lucid Motors denies report it’s considering bankruptcy

Lucid Motors has firmly rejected claims suggesting that it is contemplating filing for Chapter 11 bankruptcy. In a statement to TechCrunch, Nick Twork, the company's chief communications officer, emphasized that these rumors are entirely unfounded. He reassured stakeholders, stating, "The company has sufficient liquidity to carry its operations well into next year, as recently disclosed in our quarterly filings, and no special Board committee has been formed to explore the scenarios mentioned in the report." The company's denial follows a dramatic decline in its stock value, which plummeted over 50% on Tuesday—the largest single-day drop in its history, according to Bloomberg News. However, by 2:46 p.m. ET, the stock had somewhat stabilized at $4.72 per share, reflecting a 14% decrease from its opening price. This turbulent period comes on the heels of significant organizational changes within Lucid. The company has appointed a new CEO and has laid off over 2,000 employees this year as part of a comprehensive restructuring plan. This overhaul is strategically timed ahead of the anticipated launch of a more affordable electric SUV later this year. Earlier in the day, an electric vehicle blog cited unnamed sources indicating that the company was either considering bankruptcy or a move to become private, based on recommendations from consulting firm AlixPartners. Twork clarified that AlixPartners is working with Lucid solely to enhance operations and has not advised management or the Board regarding bankruptcy. AlixPartners has a history of assisting struggling electric vehicle manufacturers. For instance, Lordstown Motors engaged the firm in 2021 following executive resignations and ultimately partnered with Foxconn, although that relationship deteriorated, leading to Lordstown’s demise. Similarly, Faraday Future sought AlixPartners' expertise to implement board recommendations following an internal investigation in 2022. In its latest update, Lucid Motors reported delivering 3,953 vehicles in the second quarter of this year, a modest increase compared to the same timeframe last year. The company has faced challenges in attracting buyers for its luxury electric vehicles, despite their advanced technology. Additionally, Lucid is in the process of launching a luxury robotaxi service in collaboration with Uber and Nuro, aiming to roll it out by the end of this year. Uber has expressed commitment to purchasing at least 35,000 vehicles equipped with Nuro technology over the coming years, including 10,000 Gravity SUVs and 25,000 vehicles based on an upcoming midsize electric platform.