Lucid Group Inc. is working with restructuring consultant AlixPartners to optimize its business and cut costs amidst struggling EV sales. The consultation aims to improve execution, streamline operations, and support the successful rollout of an upcoming mid-sized vehicle. This move comes as Lucid's shares experienced a significant decline, plunging as much as 57% in intraday trading, though the company stated this was due to false rumors of a possible bankruptcy filing.
Lucid has explicitly denied any bankruptcy considerations, stating it has "sufficient liquidity to carry its operations well into next year." The company clarified that AlixPartners is assisting with operational improvements and has not recommended bankruptcy to management or the board. Nick Twork, Lucid's chief communications officer, reiterated that "rumors are completely false" and emphasized the company's focus on execution and strengthening operations.
The EV maker has faced a challenging period, including suspending its production outlook for 2026 (originally 25,000 to 27,000 vehicles), conducting recent layoffs, and undergoing a management overhaul under new CEO Silvio Napoli, who took the helm in June. Napoli has recently cut about 18% of the U.S. workforce and eliminated the chief operating officer role. Lucid reported a loss of approximately $2.7 billion in 2025 and is burning about $1 billion per quarter, producing 4,774 vehicles against 3,953 delivered in the second quarter of this year. Despite having $997.8 million in cash and about $4.6 billion in total liquidity, and substantial backing from Saudi Arabia's Public Investment Fund (which has invested over $9 billion since 2018), concerns about its financial stability persist among investors.
AlixPartners' recommendations reportedly include prioritizing the production of the Gravity SUV, while temporarily holding back the Lucid Air sedan. The consultants also advised slowing or halting expansion into additional European markets due to sales challenges and quality concerns, and focusing on a strategic review that includes the midsize "Cosmos" model and its robotaxi work with Uber and Nuro. Strategic options under review, according to one source, reportedly include going private or filing for Chapter 11 bankruptcy protection, though Lucid has vehemently denied these claims. The company's market value has fallen to roughly $2.3 billion, significantly less than the Saudi Public Investment Fund's investment.
