Saudi-backed Lucid Motors hires restructuring firm to cut costs

Lucid Motors, the Saudi-backed maker of electric cars, has hired restructuring adviser AlixPartners to cut costs, tighten operations and help deliver lower-priced vehicles.

The California-based company denied reports that it is considering bankruptcy, calling the claims “completely false,” and said it has enough cash to fund operations into next year, Bloomberg reports.

The review comes as Saudi Arabia’s Public Investment Fund reins in spending, slows parts of NEOM, cuts funding for LIV Golf and pushes portfolio companies to focus more on returns.

PIF officials have repeatedly said Lucid remains a cornerstone of the kingdom’s plan to build a domestic electric-vehicle industry, with its Saudi factory expected to anchor the country’s automotive manufacturing ambitions.

Lucid’s shares plunged as much as 57% on Tuesday, their worst intraday drop ever, before paring the decline to 13%.