Lucid Group Inc. shares tumbled as much as 21% during mid-day trading on Tuesday after a report by electric-vehicles.com said the electric-vehicle maker is exploring strategic alternatives that could include taking the company private or pursuing Chapter 11 bankruptcy protection.
The report said restructuring adviser AlixPartners has been asked to prepare findings for presentation to Lucid's board ahead of its next meeting. Those findings are expected to cover a range of scenarios, among them a take-private transaction and a U.S. Chapter 11 filing.
Sources cited in the report indicate AlixPartners has recommended the board undertake another round of restructuring in both the United States and Europe. The adviser is also reported to have urged the company to focus operational efforts on the Gravity SUV, Lucid's second model.
The Gravity has been dogged by quality issues since small-scale production began in late 2024, the report said, with those problems first detailed by electric-vehicles.com in early 2025. The adviser's review reportedly includes assessments of whether a go-private deal or Chapter 11 are viable options, but the report stressed that neither of those outcomes is a decision the board has yet taken.
Speculation about a possible take-private transaction has circulated around Lucid for months, the report noted, fueled by the gap between the amount invested by the company's Saudi backer and the current market price of its shares. According to the report, prior management said last year it was not aware of any such plan by the fund.
Market reaction and immediate context
The share-price movement on Tuesday reflected investor response to the report. The drop of up to 21% came as details circulated that a formal review of strategic alternatives is underway and that a restructuring adviser is presenting options to the board.
Operational focus
AlixPartners' reported recommendation to carry out restructuring in the United States and Europe and to concentrate on the Gravity suggests the adviser sees potential value in narrowing the firm's operational footprint. The Gravity's reported quality issues since late 2024 remain a material factor in the review, according to the report.
Board position
The report emphasized that the scenarios being evaluated are part of the adviser's remit and are not board decisions. The company has not been reported to have reached any determination on pursuing a take-private transaction or seeking Chapter 11 protection.
Summary
Lucid's stock experienced a steep intraday decline after a report said AlixPartners is reviewing options that include taking the company private or filing for Chapter 11, and that it has recommended additional restructuring and a strategic emphasis on the Gravity SUV. The Gravity has reportedly faced quality problems since small-scale production began in late 2024. The report also noted that previous management said it was unaware of any take-private plan by the company's Saudi backer.