Lucid Motors responded to anecdotes of bankruptcy. The company disclosed that its claim that it was assessing an application for insolvency protection in the United States of America was “totally false” and that it currently had sufficient liquidity to support its operation until next year.

Prior to the release of the response, the market was once hit by related rumours. Lucid's stock price dropped by more than 50 percent on the Tuesdays, one of the biggest drops in the company's record. The stock price has since recovered, but as of the afternoon of United States time, it is still below the level at which it was opened that day.

The company denied the establishment of a special commission

The Chief Communications Officer, Lucid Nick Work, stated to TechCrunch that the company had not set up any special board committee to assess the bankruptcy or other programmes that had been circulated on that day.

He added that the current focus of companies remained on improving implementation, strengthening operations and promoting the commercialization of their technological, product and innovation capacities.

The rumors are anonymous.

Earlier, an electric car blogger quoted two unnamed sources as saying that Lucid was considering two paths: applying for Chapter 11 bankruptcy protection and pushing privatization. The report also states that this direction is related to the recommendations of the consulting firm AlixPartners.

In response, Lucid stated that AlexPartners currently only assisted the company in enhancing its operations and did not recommend to management or the board of directors an application for bankruptcy.

Reorganization and new operations are still under way

Lucid has just recently replaced the CEO and has reduced more than 2,000 staff this year as part of the overall reorganization. The company is preparing to launch a smaller and cheaper electric SUV later this year.

In terms of performance, Lucid delivered 3953 vehicles in the second quarter, which is only slightly higher than the same period in the previous year. With the announcement of a new round of layoffs this month, the company also indicated that it would cancel the second production shift of the Arizona plant in order to align production with expected demand.

  • Uber proposed to purchase at least 35,000 vehicles in the coming years
  • Of which 10,000 are Gravity SUVs
  • The remaining 25,000 electric power-driven platforms

Additional information:Lucid is also advancing the high-end Robotaxi project with Uber, Nuro, with the goal of launching services by the end of the year. AlixPartners has also been involved in a number of electric car business restructuring projects in recent years.