Shares of EV start-up Lucid tank on SEC probe

Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) starts trading on the Nasdaq stock trade following completing its company mixture with Churchill Cash Corp IV in New York City, New York, July 26, 2021.

Andrew Kelly | Reuters

Shares of Lucid Group ended up down by as substantially as 19.5% for the duration of trading Monday early morning subsequent the electric automobile begin-up disclosing a probe by the U.S. Securities and Exchange Commission probably into the firm’s SPAC offer to go public.

The automaker stated it received a subpoena on Friday from the SEC “requesting the generation of particular files similar to an investigation,” according to a filing Monday early morning. Lucid mentioned even though there is “no assurance as to the scope or result of this subject, the investigation seems to worry the organization combination” in between the automaker and blank-check company Churchill Money Corp. IV.

“The Firm is cooperating entirely with the SEC in its evaluation,” Lucid stated in the filing.

Shares of Lucid were being buying and selling down by about 13% in the course of buying and selling midmorning Monday to all over $41 a share.

Lucid is the most up-to-date EV start off-up to go general public via a SPAC offer that’s been investigated by the SEC. Other folks have included Nikola Corp., Canoo and Lordstown Motors.

Most SPAC specials involving EV start off-ups were being originally celebrated by traders, sending shares by means of the roof and building some founders millionaires, if not billionaires, overnight. But the tides have turned in opposition to several of the corporations following crackdowns this yr by the SEC, which includes investigations, warnings to traders and likely modifications to accounting pointers.