Lucid Motors denies bankruptcy consideration report

Electric vehicle manufacturer Lucid Motors has vehemently denied reports that it is considering filing for Chapter 11 bankruptcy protection. "The rumors are completely false," Nick Twork, the company's chief communications officer, told TechCrunch.

"The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today," Twork stated. "Our focus is on improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation."

Lucid's denial comes after reports indicated its stock price had sunk more than 50% on Tuesday, marking the company's largest single-day intraday drop. The stock has since recovered from its freefall, trading around 14% lower than its opening price late Tuesday afternoon Eastern Time.

Earlier on Tuesday, an EV blog, citing two unnamed sources, reported that Lucid was considering either filing for Chapter 11 bankruptcy protection or going private on the recommendation of consulting firm AlixPartners. Lucid has undertaken significant restructuring this year, including laying off over 2,000 employees and appointing a new CEO.