Lucid‘s retrenchment under new Chief Executive Silvio Napoli has already run deeper than any in the company’s history, a reset EV has chronicled through a series of exclusives over the past two months.
The automotive outlet CarBuzz reported on Wednesday, citing one unnamed source, that Lucid had retained AlixPartners, a turnaround and restructuring firm.
Both Lucid and AlixPartners declined to comment when approached by the outlet.
What EV Has Reported
Since Napoli took over on June 1, Lucid has cut about 18% of its US workforce, eliminated its chief operating officer role, suspended 2026 production guidance and replaced most of its senior team, including the chief financial officer.
A July overhaul brought in a new finance chief, Alexander De Bock from supplier TI Automotive, a new chief technology officer and other senior hires, and halved the number of people reporting directly to Napoli.
Hiring has collapsed alongside the cuts, with open roles down about 76% from a year earlier.
EV first reported on June 22 that the company had pushed out COO Marc Winterhoff, the former interim chief executive, hours before Lucid confirmed it had eliminated the role.
The same day, EV exclusively reported that the company had cut 18% of its US staff and was weighing reductions of up to 40% in Europe, a European cut its board later set to be completed by the end of September.
The exits reach back further.
EV first reported the November ouster of chief engineer Eric Bach, and, more recently, the departure of engineering and software chief Emad Dlala, Napoli’s first major loss.
By EV‘s count, 16 C-level executives, senior vice presidents or vice presidents have left since October 2023, turning over nearly the entire team assembled under founder Peter Rawlinson.
Earlier this week, an insider described the overhaul as the most serious reset in the company’s history, saying the business was being pared back to survive until its next model arrives.
Winterhoff had praised the Gravity’s market performance at Lucid’s March investor day while a fleet-wide safety recall was under way but undisclosed.
He and departing CFO Taoufiq Boussaid are now named in a federal securities class action, filed in late May, alleging the company concealed a supplier defect while touting improved manufacturing.
AlixPartners
AlixPartners is one of the world’s largest turnaround and restructuring consultancies, with more than 2,500 staff and a history that includes both high-profile bankruptcies and quieter operational overhauls.
The firm describes its work as spanning “urgent performance improvement, accelerated transformation, complex restructuring and risk mitigation.”
Companies hire such advisers for cost and operational turnarounds far short of a filing, which is precisely the kind of work Napoli has said he is doing.
Napoli has told staff the earlier strategy of building factory capacity ahead of demand is finished, and to expect a smaller, more focused company for at least a year. A hire, if confirmed, would fit that effort as readily as any darker reading, and the report establishes no bankruptcy intent.
One person cited by CarBuzz went further, doubting Lucid could last beyond next summer given its per-vehicle losses.
The Financial Reality
Lucid lost about $2.7 billion in 2025 and has continued to burn roughly $1 billion a quarter, building more vehicles than it sells: 4,774 produced against 3,953 delivered in the second quarter, and 5,500 against 3,093 in the first.
The company suspended its 2026 production guidance of 25,000 to 27,000 vehicles in May, pending Napoli’s strategic review.
The recalibration is visible on dealer lots, where Lucid is still clearing 2026 Gravity SUVs with zero-percent financing and a $10,000 credit months after launching the 2027 model.
The company ended 2025 with $997.8 million in cash and about $4.6 billion in total liquidity, and on July 6 it drew $800 million from a term loan provided by an affiliate of its Saudi backer, its second such draw this year.
The Saudi Backstop
Saudi Arabia’s Public Investment Fund holds a majority of the company, has committed more than $9 billion since 2018, and has agreed to buy 50,000 midsize vehicles built at a plant in the kingdom, with an option for 50,000 more.
That midsize model, the Cosmos, priced below $50,000, is the vehicle Napoli’s turnaround is built around, with a public reveal expected this summer, production due to begin late in 2026 and a European arrival in 2027.
After a slide of more than 99% from its 2021 peak, Lucid‘s market value has fallen to roughly $2.3 billion as of Wednesday, less than a third of what the fund has invested, leaving how long that support continues at the center of every scenario.
Earnings Results
Lucid reports first-half results on August 4, its first full financial update under Napoli and the clearest near-term read on the cash position, the runway the April raise and the July loan draw have bought, and whether he reinstates the suspended production target.
