Lucid Motors CEO Peter Rawlinson poses on the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq after completing its business combination with Churchill Capital Corp IV in New York, NY, July 26, 2021.
Andrew Kelly | Reuters
Lucid Group shares fell as much as 19.5% during trading on Monday morning after the launch of the electric vehicle announced an investigation by the US Securities and Exchange Commission about the likelihood of the SPAC deal going public.
The automaker said in a statement Monday morning that it received a subpoena from the SEC on Friday “asking for certain documents related to the investigation.” Lucid said that while “there is no certainty about the scope or outcome of this case, the investigation appears to be about a business combination” between the automaker and the check company Churchill Capital Corp. IV.
“The company is fully cooperating with the Securities and Exchange Commission in its review,” Lucid said in a statement.
Lucid shares rose Monday afternoon to close at $ 44.73 a share, down 5.1%. The company has a market capitalization of nearly $ 73 billion.
Lucid is the latest electric vehicle startup to go public thanks to the SPAC deal, which was investigated by the SEC. Other companies include Nikola Corp., Canoo, and Lordstown Motors.
Most of SPAC’s electric car start-up deals were initially celebrated by investors, blowing stocks up and making some of the founders millionaires, if not billionaires, in no time. But the situation has turned against many companies since the SEC’s crackdown this year, including investigations, investor warnings and possible changes to accounting rules.