Lucid Motors denies bankruptcy rumors after stock plunge

Lucid Motors is denying a report that it’s weighing filing for Chapter 11 bankruptcy protection (the US legal process for corporate financial reorganization). An electric vehicle blog, citing two unnamed sources, reported Tuesday that the company was considering either filing for Chapter 11 bankruptcy protection or going private on the recommendation of consulting firm AlixPartners. Chief communications officer Nick Twork told TechCrunch that “rumors are completely false.” The report landed the same day Lucid’s stock sunk more than 50% intraday — its biggest intra-day drop ever, according to Bloomberg News. Shares later recovered some ground, trading at $4.72 a share as of 2:46 p.m. ET, still about 14% lower than its opening price.

Twork said the company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and that it has not formed any special Board committee to explore the scenarios reported Tuesday. He said Lucid’s focus is on improving execution, strengthening operations, and positioning the company to realize the full potential of its technology, products, and innovation. He also said AlixPartners is helping strengthen Lucid’s operations and nothing else, and has not recommended bankruptcy to management or the Board.

The rumors surfaced during a difficult stretch for Lucid. The company has laid off more than 2,000 employees this year as part of a restructuring, and it has cut back production at its Arizona factory to align production plans with anticipated demand. Lucid delivered 3,953 vehicles in the second quarter of this year, a period in which the company has historically struggled to convert its luxury EVs’ technical specs into buyer demand.

Despite the turmoil, Lucid is pushing ahead with plans for a luxury robotaxi service alongside partners Uber and Nuro. Uber has committed to buying at least 35,000 Nuro-equipped Lucid vehicles over the next few years, including 10,000 Gravity SUVs and 25,000 vehicles based on the upcoming midsize EV platform — a bet on Lucid’s longer-term technology roadmap even as its near-term finances face public scrutiny.

Why it matters

The episode shows how sensitive markets remain to unverified reports about luxury EV startups: a single blog post preceded a stock drop of more than 50% in hours, even as Lucid maintains its near-term liquidity is intact.