Shares of Lucid Group Inc (NASDAQ: LCID) are down nearly 20% on Monday morning after the electric vehicle maker said it received a subpoena from the U.S. SEC.
SEC is investigating the SPAC merger
The U.S. regulators are investigating a bunch of EV companies that recently went public via a SPAC merger. The subpoena confirms that Lucid is also under scrutiny from the Securities and Exchange Commission. In its 8-K filing, the California-based company said:
“The investigation appears to concern the business combination between the Company (Churchill Capital Corp IV) and Atieva Inc and certain projections and statements.”
According to Lucid, it is “fully cooperating” with the SEC. Other notable names being probed include Lordstown Motors and Nikola Corp.
Lucid has benefitted greatly from the recent EV boom, hitting a high of $55 a share last week.
What the next two years could look like for Lucid
Lucid combined with Churchill Capital Corp IV to debut on the Nasdaq Stock Exchange in July. The U.S. regulator has demanded certain documents related to its deal with the blank check company that valued it at $24 billion.
In September, the EV maker bolstered its balance sheet with $4.4 billion in new funding. Customer reservations climbed to 13,000 for Lucid in its fiscal Q3, representing an order book worth $1.3 billion.
By mid-November, its reservations had already hit 17,000. The California-based company started delivering Lucid Air in October 2021, and its luxury electric SUV “Gravity” is set to launch in 2023.
Under the leadership of CEO Peter Rawlinson, Lucid is targeting 20,000 vehicles to be produced next year and 50,000 in 2023. Last month, Lucid Air was named the 2022 MotorTrend Car of the Year.
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