Lucid Air electric vehicle (EV) on display at the company’s showroom in Tysons, Virginia, USA on Saturday, February 17, 2024.
Samuel Corum | Bloomberg | Getty Images
lucid motor Speculation that the company was considering new options caused the stock to drop more than 40% at one point, and trading was halted multiple times on Tuesday due to volatility.
The stock recouped some of its intraday losses, closing 16% lower at $4.62 per share.
The site, which focuses on electric vehicles called EVs, reported Tuesday that Lucid is considering going private or filing for Chapter 11 bankruptcy. The company has asked AlixPartners to consider these options and present its findings to Lucid’s board of directors by its next meeting, the site said.
EV’s report also said the board encouraged AlixPartners to further reorganize in the US and Europe and focus on the Gravity SUV.
AlixPartners said it had no comment on the report. “The rumors are completely false,” Lucid said in a statement.
“As recently disclosed in our most recent quarterly report, we have sufficient liquidity to continue our operations into next year and have not established a special board committee to consider the scenario reported today,” the company said in a statement. “We are focused on improving our execution, strengthening our business, and positioning Lucid to realize its full technology, product and innovation potential. AlixPartners supports us in everything else and has not recommended bankruptcy to management or the board.”
Lucid faces an increasingly difficult market as EV adoption is slower than expected and regulations change under the Trump administration, including the removal of a $7,500 federal incentive for EV purchases.
The company, which has received significant support from Saudi Arabia’s Public Investment Fund, announced last month that it would lay off 18% of its U.S. workforce as part of a cost-cutting plan.
Earlier this month, Lucid missed Wall Street expectations for its second-quarter delivery results.
At the time, the company’s new CEO Silvio Napoli announced a management shake-up to “simplify the company structure.”
Lucido suspended production guidance in May as Napoli said it would evaluate the company’s business decisions, adding that it needed to reduce its “increased inventory” of vehicles.
