Lucid Motors hires restructuring adviser, denies bankruptcy as stock plunges 57%

Saudi-backed electric vehicle maker Lucid Motors has hired restructuring adviser AlixPartners to cut costs, streamline operations, and ensure the successful launch of its new mid-size vehicle, while explicitly denying that it is preparing for bankruptcy. The company stated that the consultant is assisting solely with operational improvements and has not recommended bankruptcy to management or the board, calling rumors of a potential Chapter 11 filing or a move to take the company private "completely false." Despite the denial, Lucid's shares plunged 57% in a single day—the firm's largest drop ever—after reports suggested it was evaluating strategic options including bankruptcy, though the company confirmed it has sufficient liquidity to sustain operations through next year backed by its majority owner, Saudi Arabia's Public Investment Fund.