Lucid Plunges 50% as Reports Claim EV Maker Is Weighing a Take-Private or Chapter 11 Lucid Group’s stock experienced a dramatic 50% intraday drop on Tuesday, triggered by reports suggesting the electric vehicle (EV) maker is considering drastic restructuring measures, including a potential take-private transaction or a Chapter 11 bankruptcy filing. The company’s shares briefly fell to a daily low of $2.37 before recovering slightly to $4.50, reflecting a 18.33% decline for the session. The selloff intensified speculation about Lucid’s financial struggles, with the company’s market value now hovering near $2.3 billion—less than a third of the $9 billion invested by its majority owner, Saudi Arabia’s Public Investment Fund (PIF). The rumors, which gained traction after reports from EV/electric-vehicles.com and CarBuzz, claim Lucid has retained turnaround firm AlixPartners to evaluate strategic options, including a take-private deal or a Chapter 11 filing. However, Lucid denied the claims in an emailed statement, asserting that the company has “sufficient liquidity to carry its operations well into next year” and that no formal decisions have been made. The firm emphasized that no bankruptcy filing or SEC documents confirm the allegations, noting that a take-private transaction and a Chapter 11 filing represent fundamentally different outcomes. Financial pressures have long plagued Lucid, with the company reporting a $2.7 billion loss in 2025 and burning through approximately $1 billion per quarter. As of the end of 2025, Lucid held about $998 million in cash and $4.6 billion in total liquidity. Despite this, the company’s market value has plummeted, raising questions about the return on PIF’s investment.#public_investment_fund #lucid_group #alixpathners #silvio_napoli #alexander_de_bock
