Lucid shares plunge 40% on bankruptcy rumors after restructuring firm retained

Lucid Group’s stock cratered roughly 40% after reports surfaced that the struggling electric vehicle maker has retained AlixPartners, a restructuring advisory firm. The move, reported by CarBuzz on July 7, 2026, has turbocharged existing fears about Lucid’s financial trajectory. Prediction markets now indicate a 48-50% probability of bankruptcy before 2027.

The numbers behind the nosedive

In Q1 2026, the company posted revenue of $282.5 million against a net loss exceeding $1 billion in a single quarter. The full-year 2025 numbers were even worse. Lucid sustained a net loss of $3.8 billion, up from a $3 billion loss in 2024.

Lucid has already taken aggressive action to stop the bleeding. The company slashed approximately 1,400 jobs, an 18% reduction in its workforce. New CEO Silvio Napoli, who took the reins on June 1, 2026, walked into a wholesale leadership shakeup that also included the departure of several other executives.

The Saudi lifeline, and its limits

Saudi Arabia’s Public Investment Fund holds approximately 60% of Lucid’s shares. PIF hasn’t just been a passive investor: there’s a prospective contract for up to 100,000 midsize EVs to be produced at a planned factory in Saudi Arabia.

What this means for investors and the broader market

The 40% single-day plunge puts Lucid in rarefied territory for a company that went public via SPAC in 2021. For traders still holding Lucid shares, the AlixPartners news creates a binary outcome scenario. Either the restructuring effort leads to a viable path forward, potentially involving fresh PIF capital or a strategic transaction, or it becomes a precursor to formal bankruptcy proceedings. The 48-50% bankruptcy probability from prediction markets tells you the market genuinely doesn’t know which way this breaks.

An upcoming earnings report scheduled for August 4, 2026, is anticipated to shed further light on Lucid’s financial health and future strategies.