EVwire brief: Lucid has pushed back against reports that it is weighing a take-private transaction or a Chapter 11 bankruptcy filing, calling the claims "completely false" in a public statement from Chief Communications Officer Nick Twork.
Responding to an earlier report from industry publication EV, Twork said Lucid has "sufficient liquidity to carry its operations well into next year," has not formed a special board committee to evaluate the reported scenarios, and that restructuring adviser AlixPartners "has not recommended bankruptcy to management or the Board."
“Our focus is on improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation. AlixPartners is assisting us in that and nothing else and has not recommended bankruptcy to management or the Board.”
AlixPartners reportedly advised Lucid to deprioritize its Air sedan, too.
The statement follows an exclusive report from EV, which cited anonymous sources claiming AlixPartners was preparing recommendations for Lucid's board that included evaluating strategic options such as a potential take-private transaction or a Chapter 11 bankruptcy filing. The report also said the adviser had recommended focusing on the Gravity SUV, slowing European expansion, and prioritizing operational execution.
Lucid shares were down as much as 49% Tuesday's trading session due to the report, trading as low as $2.80 per share, before bouncing back to just about 19% down at about $4.40 per share.
Context:
AlixPartners is one of the world's largest turnaround and restructuring advisory firms, helping companies improve operations, reduce costs, and evaluate strategic alternatives. While the firm's involvement does not necessarily indicate bankruptcy is imminent, reviews like this typically examine a wide range of potential outcomes before boards decide on a long-term direction.
Lucid has already been undergoing its most significant restructuring since the company was founded. Since taking over as CEO in June, Silvio Napoli has reduced the company's workforce by 18%, reshaped its executive leadership team, and narrowed Lucid's operational focus as it works to improve execution ahead of the launch of the Lucid Cosmos midsize SUV.
Source: EV
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