Automotive
Lucid Group (Lucid Motors) moved quickly to reject a report claiming the EV maker was considering a take-private transaction or Chapter 11 bankruptcy filing, calling the claims “completely false” after its stock briefly plunged more than 50 percent during Tuesday trading. The selloff followed a blog report suggesting that restructuring adviser AlixPartners had been asked to present options to Lucid’s board, including a possible bankruptcy or privatization scenario. Lucid denied that any such special board committee had been formed and said the adviser is focused on improving execution and operations.
The company also said it has enough liquidity to fund operations well into next year, an important point as investors continue to question how quickly Lucid can scale production and reduce cash burn. Lucid has long had the backing of Saudi Arabia’s Public Investment Fund, but that has not eased concerns about weak demand, repeated capital raises, and the high cost of building an EV company from the ground up. Tuesday’s trading showed just how sensitive the stock has become to any negative report tied to restructuring or liquidity.
Lucid’s stock was halted multiple times because of volatility, reportedly falling as much as 57 percent to $2.37 before recovering part of those losses. Even with the company’s denial, the market reaction reflected deeper worries about Lucid’s current position. Shares have lost roughly 99 percent of their value since the company went public, and the automaker is still working toward consistent profitability nearly five years after its public-market debut.
The denial comes during a broader restructuring push under CEO Silvio Napoli, who took over in June. Lucid recently said it would cut about 18 percent of its U.S. workforce, eliminate the chief operating officer role, and simplify its leadership structure. The company has also made several executive appointments, including a new chief financial officer and new leaders for technology, customer, transformation, and digital operations.
Lucid’s Gravity SUV remains a key piece of the company’s future, but its launch has not been without challenges. In May, Lucid suspended its 2026 production forecast of 25,000 to 27,000 vehicles after supplier-related issues disrupted Gravity deliveries. The company said it would provide updated guidance after a strategic review, making execution over the next several quarters especially important as it works to move beyond the Air sedan and prove it can support higher-volume products.
For now, Lucid’s message is that bankruptcy and take-private speculation are not part of its current plan. The company is still under pressure, and the market clearly wants more evidence that cost cuts, leadership changes, and Gravity production improvements can translate into a stronger business. Lucid has the product talent and engineering credibility to stay in the conversation, but the next phase will depend less on headlines and more on whether it can deliver vehicles, control spending, and rebuild investor confidence.
Darryl Taylor Dowe is a seasoned automotive professional with a proven track record of leading successful ventures and providing strategic consultation across the automotive industry. With years of hands-on experience in both business operations and market development, Darryl has played a key role in helping automotive brands grow and adapt in a rapidly evolving landscape. His insight and leadership have earned him recognition as a trusted expert, and his contributions to Automotive Addicts reflect his deep knowledge and passion for the business side of the car world.
