Lucid Group Share Decline and Potential Bankruptcy
On Tuesday, Lucid Group Inc. shares fell up to 46% intraday, prompting two volatility trading halts. The plunge followed a report from electric‑vehicles.com that the company is evaluating strategic options, notably a Saudi‑backed take‑private transaction or filing for Chapter 11 bankruptcy protection. Restructuring adviser AlixPartners has been engaged to assess these scenarios and is scheduled to present its findings to Lucid’s board before the next board meeting. AlixPartners is reportedly recommending that the board undertake another round of restructuring in the United States and Europe, concentrating the company’s resources on its Gravity SUV. The Gravity model, Lucid’s second electric vehicle, has experienced quality issues since low‑volume production began in late 2024, a problem first reported by electric‑vehicles.com in early 2025. The adviser’s mandate includes evaluating the go‑private and Chapter 11 options, though the board has not yet decided on either path. Market speculation about a take‑private deal has persisted for months, driven by the gap between the Saudi backer’s investment and the current share price; Lucid’s previous management stated in the prior year that it was unaware of any such plan by the fund. The article was generated with AI assistance and edited by a reviewer.