Lucid Motors has forcefully denied speculation that it could file for bankruptcy, going so far as to send a cease-and-desist letter to the publication that claimed the automaker was weighing Chapter 11 protection or a take-private deal.
The company's response has been unusually aggressive for a matter it insists carries no substance, escalating from a public rebuttal to legal action and a regulatory filing in a matter of days.
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Rumor Origins and CEO Response
Earlier this week, media outlet @EV_carba (Electric-Vehicles.
com) reported that it had heard from unnamed sources that Lucid had been in talks with advisor AlixPartners, which reportedly urged it to restructure in the US and Europe and to prioritize the Gravity SUV.
That could mean filing for bankruptcy protection or going private, prompted by the company's struggling share price and pressure from Saudi Arabian investors.
Lucid quickly responded to the report.
Writing on LinkedIn, chief executive Silvio Napoli labeled the reports false, although he did not deny that the EV maker is working with outside advisors to improve.
“Lucid is not considering bankruptcy or a transaction to take the company private,” he said. “Those reports are false.
The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.”
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“We work with outside advisors to improve operational performance and execution.
