Topline<\/p>\n
Electric vehicle manufacturer Lucid Motors denied rumors it was considering filing for Chapter 11 bankruptcy, after a report suggesting it could prompted a more than 55% crash in its stock Tuesday afternoon. <\/p>\n
The beleaguered electric vehicle manufacturer\u2019s stock crashed on Tuesday after a report indicated it could be considering bankruptcy or going private.<\/p>\n
Copyright 2023 The Associated Press. All rights reserved.Key Facts<\/p>\n
Shares of LCID were halted multiple times on Tuesday for volatility, with the share price collapsing to a low of $2.37 per share before significantly recovering, eventually trading at $4.68 by 3:30 p.m. EDT\u2014still down around 15% on the day.<\/p>\n
The rapid collapse from its price of around $5.50 a share early in the day took place after electric vehicle publication EV<\/a> reported the company asked restructuring advising firm AlixPartners to deliver a final report on options for the company before its next board meeting.<\/p>\n Sources told EV the report would likely push for one more round of restructuring, but could also review taking the company private or filing for Chapter 11 bankruptcy protections.<\/p>\n In a statement sent to Forbes, Lucid\u2019s chief communications officer Nick Twork called rumors \u201ccompletely false,\u201d adding that the company has \u201csufficient liquidity\u201d for the next year and \u201chas not formed any special Board committee to explore the scenarios reported today.\u201d<\/p>\n AlixPartners is helping the company with its goals of \u201cimproving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation,\u201d Twork said, and has not recommended bankruptcy at this time.<\/p>\n Key Background<\/p>\n Lucid Motors, an electric vehicle manufacturer founded by a former Tesla engineer, went public in a blockbuster SPAC deal<\/a> in 2021 in a deal that valued the company at $24 billion. The company was once billed as one of Tesla\u2019s biggest rivals, and Saudi Arabia\u2019s Public Investment Fund owns a majority stake in the company. However, its stock has fallen precipitously from its high of $577.50 in November 2021, erasing the vast majority of its value. The company posted a net loss of over $1.13 billion in its first quarter of 2026, and went through two rounds of layoffs, cutting 12%<\/a> of its workforce in February and another 18%<\/a> in June.<\/p>\n BIG NUMBER<\/p>\n $1.8 billion. That was Lucid Motors\u2019 market cap as of Tuesday afternoon.<\/p>\n","protected":false},"excerpt":{"rendered":"Topline Electric vehicle manufacturer Lucid Motors denied rumors it was considering filing for Chapter 11 bankruptcy, after a…\n","protected":false},"author":2,"featured_media":541587,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,4412,85,46,227367],"class_list":["post-541586","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-electric-vehicles","tag-il","tag-israel","tag-lucid-motors"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/541586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=541586"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/541586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/541587"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=541586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=541586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=541586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}