On Tuesday, Lucid Motors faced intense market volatility, leading to multiple trading halts as its stock plummeted over 40%. This decline was triggered by speculation from an electric vehicle-focused site, EV, suggesting that Lucid was exploring options such as going private or filing for Chapter 11 bankruptcy.
The report indicated that Lucid had engaged AlixPartners to assess these options and provide recommendations to its board. However, AlixPartners declined to comment on the matter.
In response, Lucid issued a statement categorically denying the rumors, emphasizing that it has adequate liquidity to sustain operations well into the next year and has not established any special board committee to consider the reported scenarios. The company reiterated its commitment to enhancing operational execution and leveraging its technology and products.
Lucid has been grappling with a tough market environment characterized by slower electric vehicle adoption and regulatory changes, including the removal of a federal EV purchase incentive. Additionally, the company recently announced a workforce reduction of 18% as part of a cost-saving strategy and missed Wall Street's expectations for second-quarter deliveries.
New CEO Silvio Napoli has initiated a leadership restructuring and suspended production guidance while addressing the company's high inventory levels