Lucid Plunges 50% as Reports Claim EV Maker Is Weighing a Take-Private or Chapter 11

July 14, 2026 - 22:19

Lucid Group shares lost half their value in a single trading session after news broke that the electric vehicle maker has brought in restructuring advisors to explore drastic options. According to sources familiar with the matter, the company is weighing a take-private deal or a potential Chapter 11 bankruptcy filing as it struggles with mounting losses and slowing demand for its luxury EVs.

The stock plunge erased billions in market capitalization and left investors scrambling to assess the odds of a Saudi-backed rescue versus a court-supervised restructuring. Lucid has long relied on funding from Saudi Arabia's Public Investment Fund, which owns a majority stake, but even that deep-pocketed backer may be rethinking its commitment as the EV market tightens.

The company has burned through cash at an alarming rate while trying to ramp up production of its Air sedan and prepare for the Gravity SUV launch. Analysts have warned that without a fresh capital infusion or a dramatic shift in strategy, Lucid could run out of runway within the next year. A take-private deal would remove the stock from public markets and give the Saudis full control, but a Chapter 11 filing would likely wipe out existing shareholders entirely.

Lucid has not commented on the reports, and the company's board is expected to meet in the coming days to decide on a path forward. For now, investors are left guessing whether the EV maker will find a white knight or face a painful restructuring.