Lucid denies report of possible bankruptcy plan as shares fall

Driving the news: Lucid shares — which opened at $5.51 — plunged to as low as $2.37 in intraday trading before recovering when the company denied the report.

• The stock closed down 16.5%, at $4.62, following the report in the online publication EV, which said Lucid had hired the consulting firm AlixPartners and asked it to consider bankruptcy.
• The consulting firm "is urging the board to run one more round of restructuring in the United States and Europe, and to narrow the company's focus onto its Gravity SUV," EV reported.
• The reported recommendation comes after Lucid recently cut 18% of its workforce.

What they're saying: Lucid acknowledged that "AlixPartners is assisting us" but said the consulting firm's focus is solely on "improving execution, strengthening operations, and positioning Lucid to realize the full potential of its technology, products, and innovation."

• "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," Lucid said in a statement.

The intrigue: Saudi Arabia's Public Investment Fund — the largest shareholder in Lucid — recently signaled a shift in its strategy to focus on "raising the efficiency of investments."

• It was not immediately clear whether PIF's strategic change is affecting Lucid.
• PIF reps did not immediately respond to a request for comment.