Shares of EV start-up Lucid tank on SEC probe

A lucid dream is one in which you are aware you are dreaming and can exert some degree of control. That seems to describe the state of mind of those who brought the all-wheel-drive Lucid Air Dream Edition to life because, by all rights, it shouldn't exist. The team that CEO Peter Rawlinson assembled not only was building the airplane while they were flying it, they were also hyping and financing the complicated endeavor at the same time. On paper, the results are just as jaw-dropping as they are easy to disbelieve. How could a first-time carmaker burst out of the gate with a stunner of an all-electric sedan that produces an eye-watering 1111 horsepower and 471 miles of EPA range in Performance spec and delivers an unprecedented EPA range of 520 miles in the 933-hp Range spec? The gracefully styled Air looks long, low, and wide, so it just has to be a portly sled that's hiding a huge battery pack and a massive pair of motors, right?

  • Lucid said it received a subpoena on Friday from the SEC “requesting the production of certain documents related to an investigation,” according to a filing Monday morning.
  • Shares of Lucid were down by as much as 19.5% during trading Monday morning.
  • Lucid is the latest EV start-up to go public via a SPAC deal to be investigated by the SEC. Others have included Nikola Corp., Canoo and Lordstown Motors.

Shares of Lucid Group were down by as much as 19.5% during trading Monday morning following the electric vehicle start-up disclosing a probe by the U.S. Securities and Exchange Commission likely into the company’s SPAC deal to go public.

The automaker said it received a subpoena on Friday from the SEC “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 blank-check company Churchill Capital Corp. IV.

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



Shares of Lucid were trading down by about 13% during trading midmorning Monday to around $41 a share.

Lucid is the latest EV start-up to go public via a SPAC deal that’s been investigated by the SEC. Others have included 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 tides have turned against many of the companies after crackdowns this year by the SEC, including investigations, warnings to investors and potential changes to accounting guidelines.

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