Electric car manufacturer Lucid Group Inc is working with restructuring consultants to address its operational challenges, a development that triggered a record decline in its share price.

Sources indicate that the advisory firm AlixPartners has been hired to examine all facets of Lucid's operations. The company is reportedly seeking to enhance its business efficiency, reduce costs, and ensure the successful launch of a new midsize vehicle.

In a statement, Lucid confirmed the collaboration with the advisor, while also dismissing rumors in industry publications about a potential bankruptcy filing as "categorically false."

The company stated it possesses sufficient liquidity to sustain its operations until the latter part of next year, emphasizing that its current focus is on improving execution and operational performance. It clarified that AlixPartners is assisting solely in this capacity and is not involved in other matters or advising management or the board on bankruptcy.

Lucid Group Inc shares experienced a dramatic intraday plunge of 57%, marking the largest single-day drop in the company's history, before paring some losses. Trading was halted multiple times due to the extreme volatility.

It remains uncertain whether Lucid would contemplate more significant actions if its current turnaround efforts prove unsuccessful. The company has relied on support from its largest shareholder, Saudi Arabia's Public Investment Fund, to fund operations as it develops new vehicle models.

An industry publication reported that strategic options under consideration, according to an unnamed source, include taking the company private or filing for Chapter 11 bankruptcy protection.