Electric-vehicle startup Lucid Group has hired financial adviser Alix Partners to counsel it on a turnaround, aiming to improve execution and operations. The company has faced challenges with sales, quality, and turnover.

Lucid's spokesman stated that Alix Partners will help position the company to realize its full potential, though no recommendations have been made yet. The news comes as Lucid's shares fell over 15% on Tuesday, following reports suggesting potential bankruptcy or a move to go private. Trading was halted multiple times.

Despite the market reaction, Lucid, which is majority-owned by Saudi Arabia's Public Investment Fund, asserted it is not exploring bankruptcy or taking the company private. The company stated it has sufficient liquidity to sustain operations well into next year, as indicated in recent quarterly filings, and denied forming any special board committee to explore such scenarios.