Lucid Motors Denies Bankruptcy Rumors, Confirms Liquidity Through Next Year

Lucid Motors shares fell more than 40 percent at one point on Tuesday before closing down 16 percent at $4.62. Trading in the stock was halted multiple times during the session due to volatility. An electric-vehicle publication reported that Lucid had asked AlixPartners to review options including going private or filing for Chapter 11 bankruptcy protection and to present findings before the next board meeting.

The same report said AlixPartners had encouraged further restructuring in the U.S. and Europe and a focus on the Gravity SUV. AlixPartners declined to comment. Lucid stated that the rumors are completely false.

The company said it has sufficient liquidity to carry operations well into next year based on its most recent quarterly filings and has not formed any special board committee to explore the reported scenarios. Lucid added that AlixPartners is assisting with improving execution and strengthening operations and has not recommended bankruptcy to management or the board.

Workforce last month as part of a cost-savings plan. Lucid missed Wall Street expectations for second-quarter deliveries earlier this month. Its new CEO Silvio Napoli announced a leadership shake-up at the same time.

The company suspended production guidance in May.