Lucid is weighing whether to go private or seek Chapter 11 bankruptcy protection as AlixPartners prepares to deliver its findings to the board before the next meeting. The review puts the Saudi-backed EV maker’s capital structure, model lineup, and expansion plans under immediate pressure.
Tuesday’s board briefing comes after Lucid shares traded flat at $5.51 in the pre-market session, a small price but a sharp reminder of how far the company has fallen from the scale implied by its backers. For shareholders, that leaves the board deciding not just on valuation, but on whether the business stays public at all.
AlixPartners Pushes One More Round
One more round of restructuring is what AlixPartners wants in the United States and Europe, with a tighter operating plan built around the Gravity SUV and less emphasis on everything else. The adviser is also urging Lucid to concentrate on Gravity production while improving quality, a direct response to the severe quality issues that followed small scale production beginning in late 2024.
Gravity began small scale production in late 2024, and the model’s launch has become the center of the review. Lucid said the SUV is the product the company needs to stabilize first, while the adviser’s recommendations point to a narrower company for at least the next year under Chief Executive Silvio Napoli.
Gravity, Lucid Air, AMP-2
Three priorities sit underneath that narrower plan: the Gravity SUV, the Lucid Air, and the second car plant in Saudi Arabia known as AMP-2. AlixPartners wants Lucid to temporarily hold back the Lucid Air, keep working on robotaxi work with Uber, and keep the mid-size Cosmos on track for production late this year.
Late this year is also the point at which Cosmos is due to enter production, making the timing of the restructuring more than a balance-sheet exercise. If Lucid slows the wrong programs now, it can preserve cash for the models and plants the board still sees as essential to a smaller company.
Europe Slows After UK Delay
Austria and Spain are now part of a slower European push, with Lucid told to slow or temporarily halt entry into additional markets. The company had already postponed the UK debut before delaying expansion to Austria and Spain, signaling that the board is willing to trade speed for focus while the wider review runs.
Last year, previous management said it was unaware of any take-private plan by the fund, even as speculation about one has continued for months. That gap between public denial and a fresh review is why Tuesday’s board session matters: whether Lucid chooses a buyout, Chapter 11 bankruptcy protection, or another restructuring path will determine how much of the current business survives in its present form.
