Lucid Group Files 8-K on Exit Costs

TL;DR

Lucid Group (LCID) filed an 8-K detailing exit/disposal costs. Watch for updates.

AI Summary

Lucid Group, Inc. filed an 8-K on May 23, 2024, disclosing costs associated with exit or disposal activities. The filing also included Regulation FD disclosures and financial statements. The company, formerly Churchill Capital Corp IV, is incorporated in Delaware and headquartered in Newark, CA.

Why It Matters

This filing indicates potential restructuring or divestment activities within Lucid Group, which could impact future operations and financial performance.

Risk Assessment

Risk Level: medium — Disclosures about exit or disposal activities can signal financial distress or significant strategic shifts, warranting closer monitoring.

Key Players & Entities

• Lucid Group, Inc. (company) — Registrant
• Churchill Capital Corp IV (company) — Former Company Name
• Annetta Acquisition Corp (company) — Former Company Name
• May 23, 2024 (date) — Date of Report
• Delaware (jurisdiction) — State of Incorporation
• 7373 Gateway Boulevard Newark, CA 94560 (address) — Principal Executive Offices

FAQ

Key Financial Figures

• $0.0001 — hich registered Class A Common Stock, $0.0001 par value per share LCID The Nasdaq S
• $21 million — it will incur a total of approximately $21 million to $25 million in charges in connection
• $25 million — a total of approximately $21 million to $25 million in charges in connection with the Plan,
• $19 million — y expects that charges of approximately $19 million to $23 million will be recognized prima
• $23 million — charges of approximately $19 million to $23 million will be recognized primarily in the sec

Filing Documents

• tm2415482d1_8k.htm (8-K) — 32KB
• tm2415482d1_ex99-1.htm (EX-99.1) — 6KB
• 0001104659-24-064914.txt ( ) — 212KB
• lcid-20240523.xsd (EX-101.SCH) — 3KB
• lcid-20240523_lab.xml (EX-101.LAB) — 33KB
• lcid-20240523_pre.xml (EX-101.PRE) — 22KB
• tm2415482d1_8k_htm.xml (XML) — 3KB

05 Costs Associated with Exit or

Item 2.05 Costs Associated with Exit or Disposal Activities. On May 24, 2024, Lucid Group, Inc. (the " Company ") announced a restructuring plan (the " Plan ") intended to optimize the Company's operating expenses in response to evolving business needs and productivity improvements through a reduction of the Company's current employee workforce by approximately 400 employees, or approximately 6%. The Company expects to substantially complete the Plan by the end of the third quarter of 2024, subject to local law and consultation requirements. The Company estimates that it will incur a total of approximately $21 million to $25 million in charges in connection with the Plan, which consist primarily of charges related to severance payments, employee benefits, employee transition, and stock-based compensation. The Company expects that charges of approximately $19 million to $23 million will be recognized primarily in the second quarter of 2024, with the majority of such charges anticipated to be paid by the end of the third quarter of 2024. Substantially all of these charges are expected to result in cash expenditures. The charges related to stock-based compensation are not expected to be material. The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. The Company may also incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On May 24, 2024, Peter Rawlinson, the Company's Chief Executive Officer and Chief Technology Officer, sent an email to the Company's employees regarding the Plan. An excerpt of the email is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The information contained in this Item 7.01 and Exhibit 99.1 attached hereto is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the " Exchange Act "), and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Forward-Looking Statements

Forward-Looking Statements This report includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding plans and expectations regarding the Plan, including timing of implementation and completion, estimates of the charges and expenditures, the estimated timing of incurrence of such charges and expenditures, the Company's business plans, expectations regarding the Company's total addressable market, statements relating to the future development and production capacity, demand and market growth, deliveries, and timing of commercial product launches, including Lucid's SUV and midsized programs, the Company's intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, capital expenditures, prospects, growth, production volumes, strategies and the markets in which the Company operates, the Company's ability to manage costs and expenses, and the promise of the Company's technology. These statements are based on various assumptions, whether or not identified in this report, and on the current expectations of the Company's management. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from these forward-looking statem

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit Number Description 99.1 Excerpt of email to Lucid employees from Peter Rawlinson dated May 24, 2024 104 Cover Page Interactive Data File (embedded within the inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: May 24, 2024 Lucid Group, Inc. By: /s/ Gagan Dhingra Gagan Dhingra Interim Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR