Shares of Lucid Group Inc. lost a sixth of their value July 14 after the electric-vehicle manufacturer acknowledged that it has hired a consulting firm known for its turnaround work to advise it on strengthening its operations, but denied a report that the consultants’ charge includes making a recommendation on whether to file for bankruptcy protection.
Early on July 14, industry publication EV reported that Lucid’s leaders have asked AlixPartners to report to the EV company’s board of directors about several strategic options that include filing Chapter 11 papers or taking the company private. The publication also said that AlixPartners is pushing Lucid directors to push through another round of cuts about a month after the company cut 18% of its U.S. workforce.
Lucid shares (Ticker: LCID) plummeted as the EV report circulated, at one point falling to $2.37, 57% below where they had closed on July 13. After Nick Twork, Lucid’s head of communications, responded to the EV report by saying “the rumors are completely false” and that AlixPartners’ restructuring consultants haven’t recommended filing for bankruptcy protection, the shares recovered a lot of those losses to close the day down “only” 16% at $4.62. Over the past year, they’ve lost more than three-quarters of their value, leaving the company’s market capitalization at about $1.8 billion.
“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 said. “Our focus is on improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation. AlixPartners is assisting us in that and nothing else.”
Lucid last month welcomed new CEO Silvio Napoli, who arrived nearly a year and a half after former boss Peter Rawlinson had stepped down and has since pushed through a series of executive changes. The new leadership team will be in charge of righting a ship that during the first quarter lost more than $1 billion in about $282 million in sales after delivering nearly 3,100 vehicles.
In the second quarter, the company’s deliveries rose to about 3,950 and production totaled 4,774 vehicles, down from 5,500 vehicles in Q1. Napoli and his lieutenants are scheduled to report Lucid’s second-quarter financial results on Aug. 4.
California rolls out rebate program
Gov. Gavin Newsom of California this week signed a state bill that creates an instant-rebate program of up to $3,500 for buyers of zero-emission vehicles.
The MyFirstEV initiative dedicates about $135 million to the rebates, funding that will be matched by participating auto companies. Buyers of new EVs with a recommended retail price of up to $50,000 will receive $3,500 while first-time buyers paying less than $25,000 for used EVs will get $1,750.
“We’re making it easier for families to drive clean, breathe clean, and keep more money in their pockets,” Newsom said in a statement. “As California leads the world toward a clean future, our message is clear: No one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.”
ChargePoint expands one partnership, adds another
The leaders of EV charging company ChargePoint are adding to their network of more than 1.4 million public and private ports around the world through two recently announced deals.
The California-based company is growing its partnership with Optimus Energy Solutions, a Florida company that owns and operates charging sites as part of a broader clean-energy portfolio. The companies said this week they’ll work together to set up more than 200 new ports around the Southeast, expanding Optimus’ charging footprint beyond Central Florida.
Separately, ChargePoint officials also announced they’re now working with Pennsylvania travel plaza operator Onvo to install ultra-fast EV chargers along major highways in the Northeast. The companies’ partnership will initially focus on 12 Onvo locations in the Keystone State as well as New York, from where they’ll aim to serve drivers on long trips. Onvo’s network totals 42 travel plazas.