Lucid's stock plummeted following news of a possible bankruptcy. At one point, it was down 57%.

Shares of electric vehicle manufacturer Lucid Group fell by more than 16% on Tuesday, July 14. During trading, the shares lost more than half their value following reports by Bloomberg and Electric Vehicles that the company is working with a restructuring advisor and considering various options, including bankruptcy or delisting.

Lucid shares fell 16.15% at the close of trading, to $4.62. The stock hit an intraday low of $2.37—a drop of nearly 57%—marking the sharpest one-day plunge in the company’s history on the stock exchange, according to Bloomberg. Due to high volatility, trading in the stock was suspended multiple times.

Lucid has retained restructuring consultant AlixPartners to evaluate the business, streamline operations, cut costs, and ensure the successful launch of a new model, sources told Bloomberg. The company is considering several strategic options, including delisting or filing for bankruptcy protection, according to one source cited by the industry publication Electric Vehicles. According to its sources, AlixPartners is expected to present its findings to Lucid’s board of directors before the next meeting. The board has not yet made any decisions, noted a source at Electric Vehicles.

AlixPartners recommends carrying out another round of business restructuring in the U.S. and Europe, as well as focusing the company's efforts on the Gravity electric crossover, according to sources at Electric Vehicles.

Lucid confirmed to Bloomberg that it is working with AlixPartners, but called reports of a possible bankruptcy filing “completely false.” “The company has sufficient liquidity to fund its operations at least through next year,” the automaker said. The company added that it is focused on improving execution and operational efficiency, and that AlixPartners is assisting exclusively with these matters and has not recommended that management or the board of directors consider bankruptcy.

If the current business turnaround program fails to produce results, it is unclear whether Lucid will consider more drastic measures, according to Bloomberg.

Reports of a possible restructuring have emerged amid Lucid’s ongoing problems, Bloomberg notes. In recent weeks, the electric vehicle manufacturer has withdrawn its production forecast, begun a major business overhaul, and announced significant staff cuts.

In April 2026, Silvio Napoli took over as CEO and began reorganizing the company’s leadership, according to Bloomberg. Specifically, he eliminated the position of chief operating officer and appointed a new chief financial officer.

Lucid’s stock has fallen 56% since the beginning of 2026. By comparison, Tesla’s stock lost 12% of its value over the same period, while Nio’s stock lost only 1.8%. The most common analyst recommendation for Lucid shares is “hold”: the stock has nine “Hold” ratings compared to two “Buy” ratings and three “Sell” and “Underweight” ratings, according to MarketWatch. The average price target of $7.33 implies a 2.7% increase from the July 14 closing price.

This article was AI-translated and verified by a human editor