Lucid shares surged about 29% on Wednesday after the electric vehicle maker dismissed a report that it was weighing bankruptcy as completely false. The stock closed at $5.95, recovering losses from Tuesday when it had plunged more than 50% at one point following a blog report claiming Lucid had hired AlixPartners to explore a Chapter 11 filing or a take-private deal. In an SEC filing, Lucid stated it has sufficient liquidity to operate well into next year and that AlixPartners is only helping improve execution and operations. The company reported about $4.7 billion in pro forma total liquidity after an April capital raise that included $550 million in convertible preferred stock from an affiliate of Saudi Arabia's Public Investment Fund, a $300 million common stock offering, and a $200 million equity investment from Uber Technologies, plus a $500 million draw on a PIF term loan. However, Lucid burned more than $1.4 billion in cash during the first quarter alone, with operations consuming about $1.2 billion and capital expenditures adding another $253 million, raising concerns about how long its capital will last.
Lucid Group Inc
Uber Technologies Inc