Lucid Motors is confronting a significant legal challenge as Eric Bach, their former chief engineer, has initiated a federal lawsuit alleging wrongful termination, discrimination, and retaliatory actions based on his German heritage. Filed in the Northern District of California on Monday, the lawsuit details troubling accusations that could further destabilize the already struggling electric vehicle manufacturer.
Allegations of Discrimination and Workplace Hostility
According to court documents, Bach’s troubles began in early 2025 when an internal investigation into Lucid’s workplace culture resulted in him being stripped of key responsibilities, particularly oversight of the company’s powertrain division. The situation allegedly deteriorated when Bach discovered that a senior HR executive had referred to him as a “German Nazi” – a revelation that came months after the initial workplace culture probe had launched.
The lawsuit states that Bach encouraged a colleague to report this discriminatory language, and claims Lucid Motors subsequently confirmed the HR executive had indeed made the offensive remark. Bach also reportedly filed an internal complaint against another vice president for similar racist behavior, which he alleges triggered retaliatory measures from the company.
Court filings indicate that Lucid attempted to pressure Bach into resigning in October 2025, before ultimately terminating his employment on November 5, 2025. Notably, the company’s public announcement at that time merely stated that Bach had “departed” without acknowledging a termination.
Bach’s Rising Trajectory Cut Short
Prior to the workplace investigation that Bach characterizes as “tainted by HR’s racist beliefs,” his career at Lucid appeared to be on an upward trajectory. With a decade of service at the company, Bach claims he had extensive responsibilities overseeing “all hardware engineering,” “product management and corporate planning.”
The complaint references specific endorsements from Lucid’s leadership, including chairman Turqi Alnowaiser, who allegedly “praised Bach’s loyalty and dedication” and “expressed a desire to continue working with Bach.” Even more significantly, Bach claims board member Andrew Liveris had indicated the Chief Technology Officer position “is yours to lose” and suggested Bach might eventually ascend to the CEO role.
Following the workplace culture investigation that began in late 2024, Bach alleges he was not only removed from powertrain oversight but also excluded from board meetings – dramatic shifts that preceded his eventual termination.
Timing Compounds Lucid’s Challenges
This lawsuit emerges at a particularly challenging moment for Lucid Motors, which faces significant financial and operational hurdles. The company is currently consuming substantial capital as it attempts to scale production of its second vehicle, the Gravity SUV, while simultaneously developing more affordable mass-market vehicles on a mid-sized platform targeted for late 2026.
Compounding these challenges is an apparent exodus of executive talent. The same day Bach claims to have been terminated, the company’s VP of engineering also departed. Former CEO and CTO Peter Rawlinson unexpectedly resigned in February, and Lucid has yet to name a permanent replacement. Additional high-level departures over the past year include the head of investor relations, Senior Vice President of Operations, Managing Director for Europe, and Vice Presidents of Software Quality and Marketing.
Potential Implications for Lucid’s Future
The discrimination lawsuit adds another layer of complexity to Lucid’s already difficult position in the competitive electric vehicle market. Beyond the immediate legal concerns, the allegations raise questions about the company’s internal culture and leadership stability during a critical growth phase.
As the legal proceedings unfold, industry observers will be watching closely to see how this case might impact Lucid’s ability to attract and retain top talent, secure additional funding, and maintain investor confidence during a period when the company needs to demonstrate its ability to scale operations and reach profitability.
Lucid has not yet provided public comment on the lawsuit, though the company’s response will likely be closely scrutinized by both legal experts and industry analysts as the case progresses through the federal court system.