Lucid shares plunge up to 50% on report it hired AlixPartners to explore take-private or Chapter 11

Author: David Moadel Read Time: 5 minutes

Quick Read

• Reports claiming Lucid hired turnaround firm AlixPartners to weigh a take-private or Chapter 11 filing sent shares crashing 50% intraday Tuesday.
• Lucid's Polymarket bankruptcy-before-2027 odds hit 19%, while the Uber robotaxi deal and August 4 earnings report are the next anticipated key catalysts.
• Act now: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Lucid didn't make the cut. Grab the names FREE today.

Editor's note: Lucid contests the accuracy of these rumors and has filed an 8K regarding the matter. For additional feedback, please contact editorial@247wallst.com.

Lucid Group (NASDAQ: LCID) stock is cratering on Tuesday afternoon. The Lucid share price declined more than 50% at one point, hitting a daily low of $2.37 before recovering to $4.50 — down 18.33% on the session as of 3:00 p.m. EST. Fresh reports revived speculation that the electric vehicle (EV) maker is exploring drastic restructuring paths. The move extends an already brutal stretch for shareholders, with Lucid shares off 87% over the past year.

The plunge follows a July 14 report from EV/electric-vehicles.com, building on an earlier July 7 CarBuzz report. Both outlets, citing anonymous sources, claim Lucid has reportedly retained turnaround firm AlixPartners to weigh strategic options that allegedly include a take-private transaction or a Chapter 11 filing. However, the company denies the rumors.

"The rumors are completely false," Lucid said in an emailed statement to 24/7 Wall Street. "The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today."

Critically, no decision has been made. There is 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.

Restructuring Reports Fuel the Selloff

According to the reporting, AlixPartners has allegedly recommended a fresh round of restructuring across the U.S. and Europe, including:

• 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
• Pausing European expansion

These are reported adviser suggestions, not board decisions.

The distress backdrop is real, even if the take-private and Chapter 11 talk remains speculative. Lucid lost approximately $2.7 billion in 2025 and has been burning roughly $1 billion per quarter. It ended the year with about $998 million in cash and roughly $4.6 billion in total liquidity.

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. The Public Investment Fund, Lucid's majority owner, has committed more than $9 billion since 2018, yet Lucid's market value has slid to roughly $2.3 billion, less than a third of what PIF has poured in.

Operating Chaos Under CEO Silvio Napoli

The reports land against a chaotic operational backdrop.

Act now: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Lucid didn't make the cut. Grab the names FREE today.