Lucid Group faced a volatile trading session after a EV-focused report suggested the company was weighing strategic options that could include going private or pursuing Chapter 11 bankruptcy protection. Shares slid in intraday trading, with the stock briefly down more than 40% before closing about 16% lower at $4.62. Trading had been halted several times amid the swings that followed market chatter.
A EV-focused outlet reported Tuesday that Lucid was considering options for the company’s future, including a potential go-private move or bankruptcy filing. The site also claimed that Lucid had asked AlixPartners to review those options and deliver findings to Lucid’s board prior to its next meeting, and that AlixPartners had encouraged the board to pursue further restructuring in the United States and Europe, with emphasis on the Gravity SUV project. AlixPartners declined to comment on the report.
Lucid issued a firm denial, stating that the rumors are completely false. The company reiterated that it has sufficient liquidity to operate well into next year, citing recent quarterly filings, and emphasized that no special board committee has been formed to explore the scenarios described in the report. Lucid added that AlixPartners is providing assistance and has not recommended bankruptcy to management or the board. The company stressed that its focus remains on improving execution and strengthening operations to realize the full potential of its technology, products, and innovation.
The denial comes as Lucid navigates a challenging market environment, marked by slower-than-expected EV adoption and regulatory changes under the Trump administration, including the removal of a $7,500 federal tax incentive for EV purchases. The EV maker, backed by Saudi Arabia’s Public Investment Fund, has recently been cutting costs, including laying off a portion of its U.S. workforce. Earlier this month, Lucid missed Wall Street expectations for second-quarter delivery results, and CEO Silvio Napoli unveiled a leadership shake-up to simplify the company’s structure. In May, Lucid suspended its production guidance while Napoli said he would be evaluating the company’s business decisions and addressing an elevated inventory of vehicles.
Lucid said the focus remains on executing its plan and advancing its technology, products, and innovation rather than on speculative scenarios. AlixPartners said it has not advised bankruptcy and clarified it is assisting the company in its ongoing efforts, not in exploring dissolution or insolvency.
The episode highlights ongoing liquidity considerations and strategic questions facing Lucid as it works to align production, cost structure, and product development with a market environment that has shown variable demand for EVs.
