Lucid (LCID) Stock Crashes 50% as Bankruptcy Fears Hit the Market

TLDR

• Lucid stock dropped over 50% on Tuesday after a report said the company is weighing bankruptcy or going private
• Restructuring adviser AlixPartners has been asked to present findings to Lucid’s board ahead of its next meeting
• Options under review include Chapter 11 bankruptcy or a take-private deal — no decision has been made
• Lucid ended Q1 with ~$700M in cash, raised $1B in April, and has ~$2B in undrawn loan capacity
• The company is expected to burn through ~$6.7B by end of 2028, with positive free cash flow not projected until 2029

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Lucid Group stock was in freefall Tuesday after a report from electric-vehicles.com said the EV maker is exploring strategic options that include filing for Chapter 11 bankruptcy or going private.

Lucid $LCID shares are falling after EV reported the company is weighing major strategic options, including going private or Chapter 11.

Restructuring adviser AlixPartners has reportedly been asked to present findings to Lucid’s board before its next meeting.

The report says no… pic.twitter.com/iUQuRPS0qp

— Wall St Engine (@wallstengine) July 14, 2026

The stock dropped more than 53% to $2.54 at its low, after trading near $5.50 for most of the morning. Trading was halted multiple times due to volatility. That puts LCID down roughly 64% for the year.

Lucid Group, Inc., LCID

Lucid did not immediately respond to a request for comment.

Restructuring adviser AlixPartners has reportedly been brought in and asked to present its findings to Lucid’s board before its next meeting. Neither bankruptcy nor a take-private deal represents a decision the board has made — these are scenarios being evaluated.

AlixPartners is said to be recommending another round of restructuring in the US and Europe, with a focus on the Gravity SUV.

Gravity SUV Under the Microscope

The Gravity is Lucid’s second vehicle. Small-scale production began in late 2024, but the model has faced quality issues since launch, first reported by electric-vehicles.com in early 2025.

The recommendation to refocus on the Gravity suggests the company sees it as the cleaner path forward — quality problems and all.

The Money Problem

Lucid’s cash position heading into this isn’t exactly comfortable. The company ended Q1 with about $700 million in cash. It raised another $1 billion in April and has roughly $2 billion in undrawn term loan capacity.

But the company is not profitable. It is expected to burn through approximately $6.7 billion by the end of 2028. Wall Street doesn’t project positive free cash flow until 2029, per FactSet.

That math has always been the core concern with Lucid.

The company is majority-owned by entities linked to the Saudi government, which has been a consistent capital provider. Speculation about a Saudi-backed take-private has circulated for months, fueled by the gap between what the fund has invested and where the stock trades.

Previous management said last year it was unaware of any such plan.

AlixPartners presenting options to the board before its next meeting suggests the timeline here is moving. Whether that results in restructuring, a take-private, or something else remains to be seen.

Lucid’s stock was last trading around $2.54, down more than 53% on the session.