Lucid Motors is pushing back hard against a report that it's considering Chapter 11 bankruptcy protection, calling the rumors "completely false." Chief communications officer Nick Twork told TechCrunch that the company has "sufficient liquidity to carry its operations well into next year" and hasn't formed any special board committee to explore such scenarios. He insisted the company's focus remains on "improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation."

This denial comes after Lucid's stock took a nosedive on Tuesday, dropping more than 50% in its biggest intra-day drop ever, per Bloomberg News. It has since recovered somewhat, trading at $4.72 a share as of 2:46 p.m. ET - still about 14% below its opening price. The company recently named a new CEO and has laid off over 2,000 employees this year as part of a sweeping restructuring ahead of the launch of its smaller, more affordable electric SUV later this year.

Earlier Tuesday, an electric vehicle blog claimed, citing unnamed sources, that Lucid was weighing Chapter 11 or going private on the advice of consulting firm AlixPartners. Twork said AlixPartners is only helping strengthen operations and "has not recommended bankruptcy to management or the Board." AlixPartners has a history with struggling EV companies: Lordstown Motors hired it in 2021 after its CEO and CFO resigned, eventually went out of business, and Faraday Future brought it in after an internal probe in 2022.

Lucid recently delivered 3,953 vehicles in Q2, barely more than last year, and has historically struggled to find buyers for its luxury EVs despite impressive tech specs. Along with recent layoffs, it eliminated a second production shift at its Arizona factory to align production with demand. Meanwhile, Lucid is trying to launch a luxury robotaxi service by year-end with Uber and Nuro, with Uber committing to buy at least 35,000 Nuro-equipped Lucid vehicles over the next few years.