EVwire brief: Lucid executives have doubled down on their denial of reports claiming the automaker was considering a Chapter 11 bankruptcy filing or a take-private transaction, with CEO Silvio Napoli publicly calling the allegations "false" as the company also sent a cease-and-desist letter to the publication behind the original report.
In a post on LinkedIn, Napoli directly denied the rumors. He also reiterated that Lucid has sufficient liquidity to fund operations into next year and said outside adviser AlixPartners is focused solely on improving operational performance rather than evaluating bankruptcy or a take-private transaction.
“We generally do not comment on rumors. But the claims circulated yesterday were so far from the facts that they require a direct response. Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
The company's latest comments build on a public statement issued Tuesday by Chief Communications Officer Nick Twork, who also rejected the claims and said Lucid is not considering bankruptcy or a take-private transaction.
Lucid also escalated its response by sending a cease-and-desist letter to EV, the publication that first reported the allegations. Signed by Chief Legal Officer Brian Tomkiel, the letter accuses the outlet of publishing false factual assertions, demands corrections or retractions, and instructs the publication to preserve documents related to the reporting for potential legal proceedings.
Nick Twork shared the cease-and-desist letter on X.
Context:
The dispute stems from an exclusive report published Tuesday that cited anonymous sources claiming restructuring adviser AlixPartners was preparing recommendations for Lucid's Board that included evaluating strategic alternatives such as a potential Chapter 11 filing or taking the company private. The report also claimed the adviser had recommended narrowing Lucid's focus around the Gravity SUV while slowing its European expansion.
Lucid immediately rejected the report, saying it has sufficient liquidity to continue operations well into next year and that AlixPartners is assisting the company with operational improvements rather than advising on bankruptcy or privatization. EV, for its part, has maintained that it is standing by its reporting.
Source: Silvio Napoli on LinkedIn, Nick Twork on X
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