Lucid Group shares quickly cut in half on report of potential bankruptcy

Investing.com -- Lucid Group Inc. shares dropped as much as 46% midday on Tuesday, entering two volatility trading halts, following a report by electric-vehicles.com that the electric vehicle maker is considering strategic options including going private or filing for Chapter 11 bankruptcy protection.

Restructuring adviser AlixPartners has been asked to present its findings to Lucid's board before its next meeting, according to the report.

The strategic options under review reportedly include taking the Saudi-backed EV maker private or filing for Chapter 11 bankruptcy protection.

AlixPartners is said to be recommending the board conduct another round of restructuring in the United States and Europe, and focus the company's efforts on its Gravity SUV.

The Gravity model, Lucid's second electric vehicle, has faced quality issues since small scale production began in late 2024, as first reported by electric-vehicles.com in early 2025.

The report said the questions about going private or seeking Chapter 11 protection are among the scenarios the adviser has been asked to evaluate. Neither option represents a decision the board has made.

Speculation about a potential take-private transaction has followed the company for months, driven by the difference between what its Saudi backer has invested and the current share price. Previous management said last year it was unaware of any such plan by the fund.

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