Lucid Group Inc. has brought in consulting firm AlixPartners to conduct a comprehensive review of its operations as part of efforts to stabilize the business and enhance financial discipline. This move follows a sharp decline in its stock price, triggered by market speculation about the company’s financial health amid recent layoffs and a pause in its production forecasts.
The electric vehicle manufacturer strongly rejected bankruptcy rumors circulating in industry circles, stating that such claims are unfounded. Lucid emphasized its liquidity position remains solid enough to sustain operations into the coming year as it prepares to launch a new midsize model. The advisory firm’s role is limited to operational improvement and cost reductions, without any recommendations toward insolvency or restructuring filings.
Lucid’s shares recorded their largest ever intraday plunge, dropping more than half of their value before recovering somewhat. The stock experienced multiple trading halts due to extreme volatility. These developments come amid a challenging period for the company, which has initiated broad management changes under new leadership. CEO Silvio Napoli recently streamlined the executive team, including elimination of the chief operating officer position and appointment of a new finance head.
While Lucid currently relies on financial support from its majority stakeholder, Saudi Arabia’s Public Investment Fund, questions remain about the long-term strategy and alternative options. Some reports suggest the company may be considering more drastic steps such as going private or seeking Chapter 11 bankruptcy protection, though Lucid has not confirmed these possibilities.