Lucid denies bankruptcy review after report triggers record share plunge

The market reaction followed an exclusive report by EV, which cited unnamed sources familiar with a confidential strategic review being conducted by restructuring consultancy AlixPartners. According to the publication, AlixPartners had been asked to present its findings to Lucid’s board ahead of its next meeting and was evaluating several strategic scenarios, including a potential take-private transaction and a Chapter 11 bankruptcy filing.

“One person close to the matter told EV that the two starker questions, whether Lucid should be taken private or seek Chapter 11 protection, are among the scenarios the adviser has been asked to weigh,” the publication reported, while noting that neither option had been approved by the board.

The portal also reported that AlixPartners had urged Lucid to conduct another round of restructuring in the US and Europe, narrow its focus to the Gravity SUV, and temporarily scale back expansion activities in Europe. There were already reports last month that the carmaker was postponing its entry into the Austrian and Spanish markets. According to the report, the consultancy recommended that Lucid ‘concentrate on Gravity production while improving its quality’ and temporarily hold back the Air saloon programme.

Lucid rejects claims

Lucid responded quickly to the report and categorically denied the allegations.

“The rumours are completely false,” a company spokesperson said. Lucid added that it has ‘sufficient liquidity to carry its operations well into next year’ and denied the report’s claim that a special board committee had been established to evaluate restructuring options.

The company confirmed that AlixPartners is working with Lucid but stressed that the consultancy’s mandate is focused on operational improvements rather than insolvency planning.

“Our focus is on improving execution, strengthening operations, and positioning Lucid to realise the full potential of its technology, products, and innovation,” the company stated. Lucid added that AlixPartners “has not recommended bankruptcy to management or the Board”.

AlixPartners declined to comment on the report.

EV further reported that the adviser had recommended prioritising Lucid’s robotaxi partnership with Uber and Nuro, continuing development of the company’s second manufacturing facility in Saudi Arabia, and maintaining the launch schedule for the upcoming midsize Cosmos model. According to the publication, delivering Cosmos on time without compromising quality was considered a central objective of the review.

Restructuring continues under new CEO

The speculation comes as Lucid undergoes a far-reaching restructuring under its new CEO Silvio Napoli, who assumed leadership of the company in June following the departure of long-time chief executive Peter Rawlinson. In June, Lucid announced plans to reduce its US workforce by approximately 18%, eliminate the Chief Operating Officer role and simplify its management structure. EV described the overhaul as “the most serious reset in the company’s history”, citing a source who said the business was being streamlined to improve its prospects ahead of the launch of the Cosmos model.

The company has also faced operational challenges. In May, Lucid suspended its 2026 production guidance of 25,000 to 27,000 vehicles while Napoli reviewed the company’s targets and inventory levels. Supplier issues have affected deliveries of the Gravity SUV, which is expected to become a key growth driver alongside the Lucid Air.

According to EV, Lucid lost approximately $2.7 billion in 2025 and continued to burn around $1 billion in cash per quarter. As reported, the company produced 4,774 vehicles but delivered only 3,953 in the second quarter. Lucid drew an additional $800 million from a term loan provided by an affiliate of Saudi Arabia’s Public Investment Fund earlier this month.

Despite the challenges, Lucid continues to maintain a sizeable liquidity position. The company reported more than $3.2 billion in cash and cash equivalents at the end of the quarter ending in May, compared with $5.7 billion a year earlier. Saudi Arabia’s Public Investment Fund remains Lucid’s largest shareholder and has invested more than $9 billion in the EV manufacturer since 2018.

Lucid is scheduled to publish its first-half results on 4 August, providing investors with the first comprehensive financial update under Napoli’s leadership and further details on the company’s restructuring efforts, liquidity position and production outlook.

eletric-vehicles.com (initial report), cnbc.com