Shares of EV start-up Lucid tank on SEC probe

Shares of Lucid Group had been down by as a lot as 19.5% throughout buying and selling Monday morning following the electrical automobile start-up disclosing a probe by the U.S. Securities and Trade Fee probably into the corporate’s SPAC deal to go public.

The automaker mentioned it acquired a subpoena on Friday from the SEC “requesting the manufacturing of sure paperwork associated to an investigation,” in response to a submitting Monday morning. Lucid mentioned though there may be “no assurance as to the scope or end result of this matter, the investigation seems to concern the enterprise mixture” between the automaker and blank-check firm Churchill Capital Corp. IV.

“The Firm is cooperating totally with the SEC in its assessment,” Lucid mentioned within the submitting.

Lucid’s inventory recovered Monday afternoon to shut at $44.73 a share, down by 5.1%. The corporate’s market cap is sort of $73 billion.

Lucid is the most recent EV start-up to go public by way of a SPAC deal that is been investigated by the SEC. Others have included Nikola Corp., Canoo and Lordstown Motors.

Most SPAC offers involving EV start-ups had been initially celebrated by buyers, sending shares via the roof and making some founders millionaires, if not billionaires, in a single day. However the tides have turned towards most of the firms after crackdowns this 12 months by the SEC, together with investigations, warnings to buyers and potential adjustments to accounting pointers.