Lucid Motors had a rough day on the NASDAQ stock exchange today. Trading was suspended three times in the wake of further reporting about the possibility that Lucid could file for bankruptcy. While the NASDAQ composite was up nearly 0.9%, Lucid stock plummeted from $5.52 per share to $2.46 in the span of an hour in midday trading. The stock rallied for the next hour and finished today at $4.46, but it’s another worrisome sign among many at the automaker.
2026 Lucid Gravity Touring ExteriorLucid
The official word from Lucid is that rumors of bankruptcy “are completely false,” although the company confirmed what CarBuzz reported last week – that the automaker retained the services of AlixPartners, a company that has shepherded many companies, including General Motors, Lordstown Motors, and other high-profile companies through bankruptcy.
“The rumors are completely false. 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. Our focus is on improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation. AlixPartners is assisting us in that and nothing else and has not recommended bankruptcy to management or the Board. We undertake no duty to update our comments on this matter.”
-Lucid spokesperson, in a statement to CarBuzz
Lucid said today that AlixPartners is helping the automaker strengthen its operations and “realize the full potential” of its technology and products. “AlixPartners is assisting us in that and nothing else and has not recommended bankruptcy to management or the Board,” the company statement read. But as we previously mentioned, there are more than a few reasons to be concerned about Lucid’s future. And a big one is the status of it’s much-needed midsize SUV.
Can Lucid Launch New Products With A Drastically Reduced Workforce?
Lucid midsize EV platform underpins two-seat Lunar robotaxi concept.Lucid
In its statement, Lucid said it has sufficient liquidity to carry its operations well into next year. At the end of the first quarter of 2026, Lucid reported $3.2 billion in total liquidity, plus another $1.5 billion in new loans that were expected in April. But while top management is in full damage-control mode, employees inside the company see few reasons to be upbeat. Some 2,400 Lucid employees have lost their jobs since the beginning of this year, leaving the company with about 6,600 workers. But it’s actually worse than that.
Earlier this year, the company promised it would launch its new midsize Cosmos SUV by the end of 2026, followed by the Earth SUV from the same platform a year later. However, a Lucid staffer today told CarBuzz that, after 18% of the company workforce was let go a month ago, employees continue leaving of their own accord, in big numbers. “Every day, my LinkedIn is full of people from Lucid saying goodbye,” the source told us.
Cosmos Production Status Is Unknown
If Lucid is serious about launching the midsize SUV this year or next, will the company have to hire new employees? Or is downsizing by natural attrition a gift to the Lucid bean counters? We asked Lucid if the midsize Cosmos and Earth SUV program is still on, but they provided no comment or confirmation. It’s worth noting that in May, the company suspended its 2026 full-year production guidance while reporting financial results.
Lucid Gravity Hands-Free Highway DrivingLucid
Another Lucid employee told CarBuzz that there is little discussion internally about the midsize SUV program at a time when every department should be fully engaged. “My guess is they’re going to have to make some announcement soon, because a normal media launch needs more than this amount of time,” the employee said, adding that component suppliers must be nervous that the launch won’t happen. “They said they were going to launch it this year.”
‘All The Suppliers Will Get Screwed’
Lucid midsize EV platform underpins two-seat Lunar robotaxi concept.Lucid
An employee who has been through a previous automotive bankruptcy said the mood at Lucid now reminds him of his earlier place of employment. The employee expects Lucid will end up in bankruptcy, and that senior executives will be offered seven-figure retention bonuses to keep them through the process, hoping to make the company look attractive to new investors. “All the suppliers will get screwed who are owed money, because they owe a lot of suppliers a lot of money.”
CarBuzz Insight – Why This Matters:
If Lucid ends up in bankruptcy, the only way the company survives is with more money from outside investors. The Saudi Arabia Public Investment Fund (via its affiliate, Ayar Third Investment Company) owns about 60% of Lucid, and its patience must be paper thin at this point after the company burned nearly $7 billion in 2024 and 2025.
If the investors change course and pull the plug, Lucid will be the latest in a long line of failed battery-electric vehicle ventures. But unlike many others in the EV graveyard, Lucid actually launched two well-regarded vehicles, the Air sedan and Gravity people mover. If the volume-selling midsize SUV can manage to survive and launch in the next six months, the company might have a chance. Without it, however, things look grim.
