Lucid Calls Bankruptcy Report "Completely False" As Shares Stage V-Shaped Recovery

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Summary: 

  • Lucid Exec Calls Bankruptcy Report 'Fake News' 
  • Lucid Reponds, Denies AlixPartners Has Recommended Bankruptcy Route  
  • Lucid Crashes On Report It's Weighing A Take-Private Or Bankruptcy
    • Lucid PR Head Calls Report "Completely False" 

    Nick Twork, Lucid's chief communications officer, took to X in late-afternoon trading to deny Electric-Vehicles.com's report about a potential bankruptcy, stating that the "company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special board committee to explore the scenarios reported today."

    Twork stated:

    The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today.  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. We

    Shares crashed nearly 50% at one point today and, in the final hour of trading, staged a V-shaped recovery. 

    Bloomberg data show Lucid is heavily shorted, with 37.22% short, or about 63.6 million shares.

    One can only assume that short sellers used the crash to cover some of their bearish positions.

    Lucid Denies Report 

    Lucid responded to Electric-Vehicles.com's report, stating that restructuring adviser AlixPartners has not recommended bankruptcy.

    Bloomberg headline:

  • LUCID SAYS ALIXPARTNERS HAS NOT RECOMMENDED BANKRUPTCY

    • Electric-Vehicles.com's report did mention that another strategic option would be a take-private transaction.

    Here are Lucid's top shareholders:

    Lucid Crashes On Report It's Weighing A Take-Private Or Bankruptcy

    Shares of struggling EV maker Lucid plunged as much as 49% after auto-industry news website Electric-Vehicles.com reported that the company is working with restructuring adviser AlixPartners to evaluate strategic options, including a potential take-private transaction or a Chapter 11 bankruptcy filing.

    Lucid EV

    Here's more from the report:

    According to the sources who spoke on condition of anonymity because the review is strictly confidential, AlixPartners is urging the board to run one more round of restructuring in the United States and Europe, and to narrow the company's focus onto its Gravity SUV.

    . . .

    One person close to the matter told EV that the two starker questions, whether Lucid should be taken private or seek Chapter 11 protection, are among the scenarios the adviser has been asked to weigh.

    Neither, the person stressed, is a decision the board has taken.

    Shares were halved in late-afternoon trading in New York... Multiple trading halts were seen. 

    How long until Lucid denies the report?