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A lawsuit filed in California at the end of last week alleges that Lucid retaliated against a former engineering manager who warned about problems with the Air EV’s drive axles months before the automaker announced two separate recalls—in late 2025 and March 2026. This was reported by Runtimewire.
In total, 3,852 Lucid Air vehicles were recalled in the United States. According to the latest recall, drive axle bolts on Lucid Air Pure models may not be properly secured, which could cause the axle to detach from the drive unit and result in sudden loss of power.
Warning as Early as April 2025
According to the lawsuit, Neil Milne warned Lucid about “multiple failure modes” of this component as early as April 2025. He claims he constantly criticized the testing, validation, and documentation methods for safety-critical engineering decisions, pointing to weak production controls, insufficient inspections, and a lack of records regarding important engineering decisions. The complaint states that only 225 vehicles were recalled in October, with another 3,627 added to a separate recall by March this year.
The lawsuit does not indicate whether the same defects Milne reported were identical to those listed in the recalls. However, he insists that the timing and nature of the problems suggest they were.
In an email allegedly sent on January 13, 2026, to Lucid’s director of product safety, Rick Clemens, Milne wrote:
“I will say what I said 9 months ago. Bad design with multiple failure modes.”
According to Runtimewire, during its investigation Lucid initially relied on a “lash detection” algorithm to analyze the Air and identify vehicles with loose axle bolts, but it turned out that hundreds of cars were missed. This, the publication reports, led to the second recall earlier this year.
Stripped of Authority and Fired
After Milne raised concerns about the drive axles, Lucid, he says, gradually stripped him of his authority. First, he was moved from his position as senior manager of power electronics to thermal programs. In February this year, he was told his performance “did not meet expectations.” He also claims he was not chosen for a leadership position in the charging division precisely because he raised the axle issue.
Milne accuses Lucid of retaliation for whistleblowing, as well as wrongful termination. He is seeking a jury trial, compensation for lost salary, bonuses, stock, and benefits, as well as punitive damages, legal costs, and compensation for emotional distress.
This story highlights how electric vehicle manufacturers respond to internal safety warnings. If Milne’s arguments are confirmed, it could set a precedent for other engineers who face pressure because of their professional concerns. At the same time, the fact of two consecutive recalls suggests that Lucid’s early defect detection system is not working as effectively as expected, and ignoring internal signals could cost the company not only its reputation but also significant financial losses.
