Key facts
- Lucid Group denied reports of considering a take-private transaction or bankruptcy filing.
- The electric-vehicle maker's shares fell more than 50% in a single day.
- Lucid stated it has sufficient liquidity to fund operations well into next year.
- Restructuring adviser AlixPartners is assisting Lucid with improving execution and operations.
- Lucid has lost approximately 99% of its value since going public.
Lucid Group on Tuesday denied as "completely false" a blog post suggesting it was considering a potential take-private transaction or a Chapter 11 bankruptcy filing. The electric-vehicle maker's shares had tumbled more than 50% in what would have been their steepest one-day decline.
Lucid stated it has sufficient liquidity to fund operations well into next year and has not formed a special board committee to explore the reported scenarios. The company confirmed that restructuring adviser AlixPartners is assisting with improving execution and operations, not recommending bankruptcy.
The Electric-Vehicles blog had reported that AlixPartners was asked to present findings to Lucid's board, including scenarios for going private or seeking bankruptcy protection, though no decision had been made.
Trading in Lucid's stock was halted multiple times due to volatility, with shares falling as much as 57% to $2.37 in afternoon trading. The company's shares have lost approximately 99% of their value since going public, as it has struggled to achieve profitability.
This report comes as Lucid undergoes a broad restructuring under CEO Silvio Napoli, who took over in June. Last month, the company announced it would cut about 18% of its U.S. workforce, eliminate its chief operating officer role, and streamline its leadership structure to reduce costs and improve execution.