A Lucid Air electric vehicle (EV) is seen at the company’s showroom in Tysons, Virginia, USA, on Saturday, February 17, 2024.
Samuel Corum | Bloomberg | Getty Images
Lucid Motor The stock fell more than 40% at one point, and trading was halted several times Tuesday due to volatility amid speculation the company was considering new options.
Electric vehicle website EV reported Tuesday that Lucid is considering going private or filing for Chapter 11 bankruptcy protection. According to the site, the company has asked AlixPartners to consider those options and present its findings to Lucid’s board of directors before its next meeting.
The EV report also said AlixPartners has urged the board to undertake further restructuring in the US and Europe and focus on the Gravity SUV.
AlixPartners said it did not comment on the report. In a statement, Lucid said “the rumors are completely false.”
“The Company has sufficient liquidity to continue its operations into the next year, as recently disclosed in its most recent quarterly reports, and has not formed any special Board committee to examine the scenarios reported today,” the company said in a statement. “Our goal is to improve execution, strengthen operations and position Lucid to realize the full potential of its technologies, products and innovations. AlixPartners is assisting us in this and nothing else and is not recommending bankruptcy to management or the Board of Directors.”
Lucid faces increasingly challenging market challenges amid slower-than-expected EV adoption and changing regulations under the Trump administration. including eliminating the $7,500 federal incentive for purchasing an electric vehicle.
The electric vehicle maker, which is heavily backed by Saudi Arabia’s Public Investment Fund, said last month it was laying off 18% of its U.S. workforce as part of a cost-savings plan.
Earlier this month, Lucid missed Wall Street expectations for its second-quarter results.
The company’s new CEO, Silvio Napoli, announced a shake-up of the company’s leadership to “simplify the company’s structure.”
In May, Lucid suspended its production leadership as Napoli said it would evaluate the company’s business decisions, adding that it needed to reduce its “heightened fleet” of vehicles.
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