Lucid Shares Drop Over 10% After AlixPartners Tie-Up, Denying Bankruptcy Plan
Updated
Updated · The Motley Fool · Jul 15
Lucid Shares Drop Over 10% After AlixPartners Tie-Up, Denying Bankruptcy Plan
3 articles · Updated · The Motley Fool · Jul 15
Summary
Lucid ended down more than 10% after a rumor linked the EV maker to restructuring adviser AlixPartners, even though the stock recovered part of its intraday plunge.
Bloomberg was told Lucid is working with AlixPartners to improve execution and operations, not to prepare a bankruptcy filing, and the company said it has enough liquidity to fund operations well into next year.
About $700 million in cash at the end of the first quarter underscored investor concern because that was down from roughly $1 billion a year earlier, while Lucid still carried $2 billion in long-term debt.
$282 million in first-quarter vehicle revenue trailed nearly $600 million in production spending, and another $630 million went to R&D and SG&A, highlighting why the company remains under pressure to find a new operating plan.