Lucid denies rumors that it is considering privatization or filing for bankruptcy, and its stock price plunged more than 50% during the session

Lucid denies rumors that it is considering privatization or filing for bankruptcy, and its stock price plunged more than 50% during the session.

U.S. electric car maker Lucid Group denied a report in a blog post on Tuesday local time, saying it was "completely untrue" that the company was considering a privatization transaction or filing for Chapter 11 bankruptcy protection. During U.S. stock trading, the company's stock price plunged more than 50%, the largest one-day drop since its listing.

However, after the company denied rumors of privatization or bankruptcy, the stock price decline narrowed to 15%.

Lucid stated in a statement that as the company's recently released quarterly documents show, the company has sufficient liquidity to support operations for a long time next year; the company's board of directors has not established a special committee to evaluate the above-mentioned rumored plan.

At the same time, corporate restructuring consultant AlixPartners is currently helping Lucid improve execution efficiency and operational performance, rather than recommending that the company file for bankruptcy.

"Our focus is on improving execution, strengthening operations and enabling Lucid to realize the full potential of its technology, products and innovation capabilities," Lucid executive Nick Twork said.

Previously, a blog called Electric-Vehicles reported that AlixPartners has been asked to submit the results of the investigation before Lucid's next board meeting, and its evaluation options include promoting the company's privatization or seeking Chapter 11 bankruptcy protection. However, the report also pointed out that no decision has been made yet.

Affected by violent market fluctuations, Lucid's stock triggered a trading suspension mechanism multiple times after 1 p.m. Eastern Time. As of intraday trading, the stock fell 57% to $2.37. Since its listing, Lucid's stock price has fallen by approximately 99%.

Nearly five years after the company went public, it has still failed to achieve profitability, which is also an important reason why the market continues to question its business model. The rumors come as Lucid is pushing for a massive restructuring under new CEO Silvio Napoli, who took office in June.

The reorganization is aimed at preparing for the launch of a smaller, more affordable electric SUV model expected to be launched later this year.

Last month, Lucid announced that it would lay off about 18% of its employees in the United States, eliminate the position of chief operating officer, and streamline the management structure to reduce costs and improve operational execution capabilities.

Lucid recently disclosed that the company delivered 3,953 vehicles in the second quarter of this year, which was only slightly higher than the same period last year. Lucid has long struggled to find enough buyers for its luxury electric cars, despite their excellent technical specifications.

In addition to announcing a new round of layoffs earlier this month, Lucid said it would eliminate the second production shift at its Arizona factory to "adjust production plans based on anticipated demand." At the same time, Lucid also plans to launch a luxury self-driving taxi service in partnership with Uber and Nuro by the end of this year.

Uber has pledged to purchase at least 35,000 Lucid vehicles equipped with Nuro technology for this project in the next few years. This includes 10,000 Gravity SUV models and 25,000 models based on the upcoming mid-size electric vehicle platform. (

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