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 just lately printed in its final quarterly filings, and it has not fashioned any particular Board committee to discover the situations reported at the moment,” he stated. “Our focus is on bettering execution, strengthening operations, and positioning Lucid to comprehend the complete potential of its expertise, merchandise, and innovation.”
Lucid’s denial comes after its inventory value sunk greater than 50% on Tuesday, its largest intra-day drop ever, in response to Bloomberg Information. 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 just lately named a brand new CEO and has laid off greater than 2,000 staff 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 electrical car weblog 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 helping 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 car firms in recent times.
Lordstown Motors tapped the agency in 2021 after its CEO and CFO resigned, in an try to restructure its nascent enterprise. The startup in the end 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 attempt to implement suggestions made by its board of administrators within the wake of an inner probe in 2022.
Lucid Motors just lately revealed that it delivered 3,953 automobiles within the second quarter of this 12 months, solely barely greater than it shipped in the identical interval final 12 months. It has traditionally struggled to search out patrons 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 will remove a second manufacturing shift at its Arizona manufacturing unit because it aligns “manufacturing plans with anticipated demand.”
Lucid Motors can be attempting to get a luxurious robotaxi service off the bottom by the tip of this 12 months with companions Uber and Nuro. Uber has dedicated to purchasing not less than 35,000 Nuro-equipped Lucid Motors automobiles for the trouble over the subsequent few years, with 10,000 of these being Gravity SUVs, and 25,000 primarily based on the upcoming midsize EV platform.
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