Shares fall 15% as company denies take-private reports
Electric-vehicle startup Lucid Group has hired financial advisory firm AlixPartners to advise on its turnaround, the company said Tuesday, as it denied reports it was exploring bankruptcy or a take-private transaction. The Dow Jones Industrial Average stood at 52,498.64.
AlixPartners will provide advice on “improving execution, strengthening operations and positioning Lucid to realize the full potential of its technology, products and innovation,” a Lucid spokesman said. The adviser has not made any recommendations to Lucid’s board, the spokesman added.
Shares fell more than 15% on Tuesday, with trading halted several times, following a report that Lucid could seek bankruptcy or go private. The company — majority-owned by Saudi Arabia’s Public Investment Fund — said it was not exploring either scenario.
“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,” the Lucid spokesman said.
According to Lucid’s most recent financial report, the company ended the first quarter with about $700 million in cash and about $2 billion in debt.
California-based Lucid has struggled amid a wider downturn for electric vehicles in the U.S. market. Its portfolio includes the Lucid Air, a luxury sedan that has won accolades but faced slowing sales, and the Lucid Gravity, an SUV released in late 2024 that was meant to be a volume-selling vehicle. Quality-control challenges, including software bugs, have hampered the Gravity’s production.
In the second quarter, Lucid delivered 3,953 vehicles, a few hundred more than it delivered in the same quarter a year prior. The automaker delivered 15,841 vehicles in all of 2025, up 55% from a year earlier. It has also entered into a robotaxi partnership with Uber Technologies.
The company has gone through several rounds of executive turnover and restructuring this year. MSI previously reported that in late June, Lucid laid off about 18% of its U.S. workforce, including its chief operating officer and former chief executive. It also eliminated a second production shift at its Arizona factory.
“We are simplifying the organization, strengthening leadership, enforcing accountability and aligning our structure with the priorities that matter most: customers, quality and innovation,” Silvio Napoli, Lucid’s new chief executive, said earlier this month.