Lucid Group’s stock cratered on Tuesday afternoon, extending an already brutal stretch for shareholders. The electric vehicle maker’s shares are off 87% over the past year, and fresh reports have revived speculation that the company is exploring drastic restructuring paths.
A July 7 CarBuzz report, citing anonymous sources, claims Lucid has retained turnaround firm AlixPartners to weigh strategic options that allegedly include a take-private transaction or a Chapter 11 filing. Critically, no decision has been made. Both Lucid and AlixPartners declined to comment, there’s no bankruptcy filing, and no SEC document confirms any of this.
A take-private and a court-supervised reorganization are very different outcomes, and AlixPartners routinely handles operational restructurings well short of any filing. The reported adviser suggestions include narrowing focus onto the Gravity SUV, temporarily holding back the Air sedan, prioritizing the Uber robotaxi program and the Saudi AMP-2 plant, holding the Cosmos midsize timeline for late this year, and pausing European expansion. These are not board decisions.
The distress backdrop is real, even if the take-private and Chapter 11 talk remains speculative. On July 6, Lucid drew $800 million from a term loan provided by Saudi PIF (Public Investment Fund) affiliate Ayar, its second draw this year. PIF has poured in significant capital to keep the company afloat.
