Lucid plunges 57%; reported to be considering bankruptcy or going private

According to Electric-Vehicles.com, US electric vehicle maker Lucid is considering options such as filing for bankruptcy protection or going private, to turn around its struggling business.

On the news, Lucid’s share price plunged as much as 57% on Tuesday, hitting a low of $2.37. It is now down 15.3%, at $4.6697. Rivian, a “Tesla challenger” and a strong rival, fell 3.5% before recouping most of its losses.

The report says Lucid, the “Tesla challenger” that was once backed with high expectations and supported by Saudi Arabia, aims to optimize its business, cut costs, and ensure that a new mid-sized electric vehicle rolls out smoothly.

The report also says restructuring advisor AlixPartners recommended that Lucid’s board focus on producing the Gravity SUV model, and improve product quality, while temporarily putting on hold the development of the Lucid Air sedan, which has long been Lucid’s flagship model. In the second quarter, the company’s vehicle production was 4,774 units, more than deliveries of 3,953 units.

Lucid expects losses of about $2.7 billion in 2025, and continued quarterly losses of about $1 billion. As of the end of last year, it held $997.8 million in cash, with total current liquidity of about $4.6 billion. On the 6th of this month, Lucid drew $800 million from a term loan provided by its Saudi Arabian banking-related company.