Lucid’s bankruptcy rumor is a bad sign for the EV future
Lucid Motors found itself in a tough bind this week, fending off bankruptcy rumors and watching its stock price plunge as a result. The company quickly denied the report, calling it “completely false” and pointing to its available free cash flow as evidence that it has enough runway to operate into next year.
But despite the swift response, the damage was widespread. The panic immediately bled into competing automakers, pulling down shares of Rivian and Polestar as investors speculated about the long-term survival of EV-only companies in the face of slowing consumer demand and whiplash policy shifts. And it cast a harsh light on the precarity of all three companies and the future of electric vehicles.
The trouble started on Tuesday, when EV trade publication EV reportedthat restructuring firm AlixPartners had advised Lucid’s board to consider Chapter 11 bankruptcy or a take-private deal. The report also said AlixPartners had...
Copyright of this story solely belongs to theverge.com. To see the full text click HERE
