The report alleged that the firm AlixPartners had been commissioned to present restructuring options—including Chapter 11 protection—to the Lucid board. Lucid management issued a sharp rebuttal, labeling the claims as entirely false. The company confirmed that its current liquidity remains sufficient to support operations well into the coming year, refuting any suggestion that a special board committee exists to evaluate insolvency.
Lucid clarified that its engagement with AlixPartners is limited to improving execution and strengthening core operations. This volatility arrives during a turbulent period for the EV sector, marked by softening consumer demand and the anticipated removal of the $7,500 federal tax credit. Lucid has recently taken aggressive steps to trim costs, including an 18% reduction of its U.S. workforce and a leadership shake-up initiated by CEO Silvio Napoli to streamline the firm's structure. Despite backing from Saudi Arabia’s Public Investment Fund, the company continues to grapple with elevated inventory levels and missed delivery targets.
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