Lucid Group is weighing going private or filing for Chapter 11 bankruptcy protection as restructuring adviser AlixPartners prepares a report for the company’s board, according to two people familiar with the matter. The news sent LCID stock down 45% with trading halted, extending the Saudi-backed electric vehicle maker’s decline to 76% over the past year.
AlixPartners, one of the world’s largest turnaround and restructuring consultancies, has been asked to deliver its findings before the board’s next meeting, the sources told Electric Vehicles on Tuesday, July 14. The firm is urging the board to run another round of restructuring in the United States and Europe and to narrow the company’s focus onto its Gravity SUV, which has faced severe quality issues since production began in late 2024.
The strategic review unfolds against a cash position that frames every option on the table. Lucid lost about $2.7 billion in 2025 and has continued to burn roughly $1 billion a quarter, according to the EV report. The company ended 2025 with $997.8 million in cash and about $4.6 billion in total liquidity. On July 6, it drew $800 million from a term loan provided by an affiliate of its Saudi backer, its second such draw this year.
Lucid’s market value has fallen to roughly $2.3 billion, less than a third of what Saudi Arabia’s Public Investment Fund has invested since 2018. The stock traded at $5.51 during pre-market on July 14, down about 76% over the past year and roughly 48% since the start of the year. That level sits about 90% below the $57.75 high the shares reached on November 17, 2021, when the company went public via a merger with Churchill Capital Corp IV.
The review comes as Lucid has executed the deepest overhaul of its history. Since taking over on June 1, new CEO Silvio Napoli has cut about 18% of the US workforce, eliminated the chief operating officer role, replaced most of his senior team, and suspended the company’s 2026 production guidance of 25,000 to 27,000 vehicles. The company expects to incur about $32 million in cash charges related to the reduction, which will save about $158 million annually going forward, according to the Wall Street Journal.
Neither going private nor Chapter 11 is a decision the board has taken, the sources stressed. Speculation about a take-private has trailed the company for months, driven by the gap between what its Saudi backer has invested and where the shares now trade, and previous management said last year it was unaware of any such plan by the fund.
The EV startup sector has seen similar distress. Fisker filed for Chapter 11 bankruptcy protection in June 2024, having delivered roughly 5,000 vehicles in 2023 before production and sales collapsed due to quality issues and weak demand. When Fisker filed for bankruptcy, its stock had fallen sharply and trading was halted, according to CNBC and TechCrunch. The company’s bankruptcy was followed by accelerated debt obligations and asset sales, a cautionary precedent for any EV maker facing restructuring.
Lucid is expected to report first-half results on August 4, its first full financial update under Napoli and the clearest near-term read on its runway after the April equity raise and the July loan draw. The reported deadline ties the adviser’s work to the board’s next meeting, though neither the meeting date nor the timing of any decision could be learned.
Sources
- Electric Vehicles (EV) — Exclusive reporting on AlixPartners’ strategic review, board recommendations, cash position, stock price, and restructuring details
- Wall Street Journal — Workforce reduction details and cost savings figures
- CNBC — Fisker bankruptcy filing and precedent
- TechCrunch — Fisker Chapter 11 bankruptcy filing
