Shares of EV start-up Lucid tank on SEC probe

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  • According to a filing Monday morning, Lucid said it received a “request to produce certain documents related to an investigation” from the SEC on Friday.
  • Shares of Lucid were down nearly 17 per cent during premarket trading on Monday.
  • Lucid is the latest EV start-up to go public through the SPAC deal to be investigated by the SEC. Others include Nikola Corp, Canoo and Lordstown Motors.

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Shares of Lucid Group fell nearly 17% during premarket trading on Monday after the electric vehicle start-up disclosed that the US Securities and Exchange Commission would investigate the possibility of the company’s SPAC deal going public.

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The automaker said it received a “request to produce certain documents related to an investigation” from the SEC on Friday, according to a filing Monday morning. Lucid said that although “there is no assurance as to the scope or outcome of this case, the investigation concerns a business combination between the automaker and the blank-check company Churchill Capital Corp IV”.

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

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Shares of Lucid were trading below $39 a share before the market opened on Monday.

Lucid is the latest EV start-up to go public through a SPAC deal that has been investigated by the SEC. Others include Nikola Corp, Canoo and Lordstown Motors.

Most SPAC deals involving EV start-ups were initially celebrated by investors, sending shares through the roof and making some founders millionaires, if not billionaires, overnight. But the tide has turned against several companies after the SEC’s action this year, including investigations, warnings to investors and possible changes to accounting guidelines.

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