Lucid Group shares plunged more than 40 percent at one point on Tuesday and triggered multiple volatility halts after a report suggested the electric vehicle maker was exploring options to go private or file for Chapter 11 bankruptcy protection. The sharp decline reflected investor concerns over the company's future amid challenges in the electric vehicle sector.
The report indicated that Lucid had engaged advisory firm AlixPartners to evaluate those possibilities and report back to the board. It also noted recommendations for additional restructuring in the United States and Europe along with greater emphasis on the Gravity sport utility vehicle. AlixPartners declined to comment on the matter.
Lucid described the report as entirely inaccurate. The company stated it maintains sufficient liquidity to continue operations well into next year and has not established a special committee to examine such scenarios.
The automaker has encountered headwinds from a more competitive electric vehicle market and recent regulatory shifts. Last month it announced plans to reduce its U.S. workforce by 18 percent. It also missed analysts' estimates for second-quarter vehicle deliveries and withdrew production guidance in May.
The report indicated that Lucid had engaged advisory firm AlixPartners to evaluate those possibilities and report back to the board. It also noted recommendations for additional restructuring in the United States and Europe along with greater emphasis on the Gravity sport utility vehicle. AlixPartners declined to comment on the matter.
Lucid described the report as entirely inaccurate. The company stated it maintains sufficient liquidity to continue operations well into next year and has not established a special committee to examine such scenarios.
The automaker has encountered headwinds from a more competitive electric vehicle market and recent regulatory shifts. Last month it announced plans to reduce its U.S. workforce by 18 percent. It also missed analysts' estimates for second-quarter vehicle deliveries and withdrew production guidance in May.