Lucid Group Shares Dropped 17% Premarket After Receiving Subpoena

Dec 6, 2021 By MarketDepth

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Lucid Group (NASDAQ: LCID) shares fell approximately 17% in premarket trading Monday after the company received a subpoena by the U.S. Securities and Exchange Commission. The novelty comes just a couple of months after Lucid went public amid a multi-billion dollar SPAC deal.

Probe Received on Friday

The electric vehicle manufacturer received the probe from the SEC on Friday “requesting the production of certain documents related to an investigation,” according to a filing Monday morning. Lucid said although there is “no assurance as to the scope or outcome of this matter, the investigation appears to concern the business combination” between the automaker and special purpose acquisition company Churchill Capital Corp. IV. 

Company is Cooperating

“The Company is cooperating fully with the SEC in its review,” Lucid said in the filing.

Lucid Raised $4.4 Billion in SPAC

Lucid raised USD4.4 Billion during its SPAC merger, with the goal of using the funds to help it compete with Tesla as well as other EV makers.

Former Tesla Engineer

The automaker, created by former Tesla engineer Peter Rawlinson, has remained a popular EV company, although it only began its first delivery of electric vehicles in October. Its Lucid Air Dream model was certified by the EPA as having the capability of traveling 520 miles on a single charge.

Shift in Mentality

Investors initially cheered on the majority of SPAC deals involving EV start-ups, with shares rising overnight. However, following many encounters with the SEC, including investigations and possible accounting changes, there has been a shift in mentality.