Electric-vehicle startup Lucid Group has hired a financial adviser to counsel it on a turnaround, the company said Tuesday.

AlixPartners, the financial adviser, will provide advice on "improving execution, strengthening operations and positioning Lucid to realize the full potential of its technology, products and innovation," a Lucid spokesman said. The adviser hasn't made any recommendations to Lucid's board, the spokesman said.

Shares fell more than 15% on Tuesday following a report that Lucid could seek bankruptcy or go private. Trading was halted several times. Yet Lucid -- majority-owned by Saudi Arabia's Public Investment Fund -- said it wasn't exploring a bankruptcy or taking the company private.

"The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special board committee to explore the scenarios reported today," the spokesman said.

California-based Lucid has struggled amid a wider downturn for EVs in the U.S. market. Its portfolio of vehicles includes the Lucid Air, a luxury sedan that has won accolades but faced slowing sales, and the Lucid Gravity, an SUV released in late 2024.

The Gravity was meant to be a volume-selling vehicle for Lucid. Yet quality-control challenges, including software bugs, have hampered the Gravity's production. In the second quarter, Lucid delivered 3,953 vehicles, a few hundred more than it delivered in the same quarter a year prior. The automaker is also exploring a robotaxi partnership with Uber Technologies.

According to Lucid's most recent financial report, the company ended the first quarter with about $700 million in cash and about $2 billion in debt.

Lucid delivered 15,841 vehicles in 2025, up 55% from a year earlier.

The automaker has also endured several rounds of executive turnover and restructuring this year. In late June, Lucid laid off about 18% of its U.S. workforce, including its chief operating officer and former chief executive. It also eliminated the second shift of production at its Arizona EV factory.

"We are simplifying the organization, strengthening leadership, enforcing accountability and aligning our structure with the priorities that matter most: customers, quality and innovation," Silvio Napoli, Lucid's new chief executive, said earlier this month.

Write to Patrick George at patrick.george@wsj.com

(END) Dow Jones Newswires

July 14, 2026 16:07 ET (20:07 GMT)

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