Lucid Group Inc. Share Decline and Restructuring Outlook
On Tuesday, 14 July 2026, Lucid Group Inc. (ticker LCID) experienced a precipitous intraday fall of as much as 55%, marking the EV maker’s largest intraday decline on record. The plunge followed a report by electric‑vehicles.com that the company was evaluating restructuring options, which triggered multiple volatility trading halts on the exchange.
AlixPartners, engaged as restructuring adviser, has been instructed to present its findings to Lucid’s board before the board’s next meeting. The adviser is assessing two strategic scenarios: (i) taking the Saudi‑backed electric‑vehicle maker private, and (ii) filing for Chapter 11 bankruptcy protection in the United States. No definitive decision has been taken by the board.
AlixPartners recommends that Lucid conduct another round of restructuring activities across the United States and Europe, concentrating resources on the Gravity SUV – Lucid’s second electric vehicle – which has suffered severe quality issues since limited‑scale production began in late 2024. The adviser also advises a temporary pause in production of the Lucid Air sedan, the company’s flagship model since launch.
Bloomberg later corroborated the report, stating that Lucid aims to optimise its business, reduce costs, and ensure a successful rollout of a new mid‑size vehicle. The company has publicly asserted that it possesses sufficient cash to fund operations into the second half of fiscal year 2027, and it continues to rely on financial support from Saudi Arabia’s Public Investment Fund (PIF), Lucid’s largest shareholder, to sustain operations while new models are introduced.
The news also impacted peers; shares of Rivian Automotive Inc., another U.S. EV manufacturer backed by Amazon, slipped roughly 3% in response to the restructuring speculation surrounding Lucid.
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