Lucid Motors denies reports that it is considering bankruptcy

Lucid Motors is denying a report that it is considering filing for Chapter 11 bankruptcy protection.

“The rumors are completely false,” Nick Turk, the company’s chief communications officer, told TechCrunch in a statement.

“The company has sufficient liquidity to continue its operations until next year, as recently published in its latest quarterly filings, and has not formed any special board committee to explore the scenarios announced today,” he said. “Our focus is on improving execution, enhancing operations, and positioning Lucid to realize the full potential of its technology, products and innovations.”

Lucid’s denial comes after its stock price fell more than 50% on Tuesday, the largest intraday drop on record. According to Bloomberg News. The stock has recovered from the free fall, trading at $4.72 per share as of 2:46 PM ET, about 14% below its opening price.

The company recently appointed a new CEO and 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, A.J Electric Vehicle Blog It 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. AlixPartners is helping Lucid consolidate its operations and “nothing else and neither management nor the board has recommended bankruptcy,” Toork said.

AlixPartners has been an advisory firm to struggling electric vehicle companies in recent years.

Lordstown Motors has named the company its CEO and CFO in 2021 to resignin an attempt to restructure its emerging business. The startup eventually partnered with Taiwanese electronics giant Foxconn, though that relationship soured and Lordstown Motors went out of business.

Faraday Future has also brought AlixPartners on board Try to implement the recommendations Taken by its Board of Directors following an internal investigation in 2022.

Lucid Motors recently revealed that it delivered 3,953 vehicles in The second quarter of this yearjust a little more than what was shipped in the same period last year. It has historically struggled to find buyers for its luxury electric cars, despite their impressive technology specs. Along with the latest round of layoffs announced earlier this month, Lucid also said it will cancel the second production shift at its Arizona plant as it aligns “production plans with anticipated demand.”

Lucid Motors is also trying to launch a luxury taxi service by the end of this year with Uber and Nuro. Uber has it Committed to buying At least 35,000 Nuro-equipped Lucid Motors vehicles are planned 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.