Lucid Group IncLCID
Mentioned
Impact on stocks 1
Electrification & Mobility
Lucid Group IncTheme Impact
Off-coverage companies 2
AlixPartnersPrivate± Mixed
relevance
Bloomberg L.P.Private± Mixed
relevance
Lucid Group IncShares of Lucid plunged following a rumor that the company was working with restructuring expert AlixPartners. Lucid confirmed to Bloomberg that it is working with AlixPartners to improve execution and operations, but denied that bankruptcy is on the table, stating it has sufficient liquidity to carry operations well into next year. At the end of the first quarter, the electric car company had roughly $700 million in cash and no short-term investments, compared to about $1 billion in cash and over $600 million in short-term investments a year earlier, while long-term debt stood at $2 billion and other long-term liabilities at $500 million. In the first quarter, Lucid spent $630 million on research and development and selling, general, and administrative costs, generated only $282 million in revenue from car sales, and spent nearly $600 million to build them. The stock recovered much of its initial loss but still ended the day down more than 10%.
Lucid Group Inc