An article written by Kirsten Korosec and published by TechCrunch reported the probe on Monday. The news broke after the electric vehicle maker issued a regulatory filing stating that it had received a subpoena. On the news, Lucid Group shares dropped more than 9.5% TechCrunch noted.
The Securities and Exchange Commission’s (SEC) investigation reportedly concerns a transaction that enabled Lucid Group to become a publicly traded company via a merger with special purpose acquisition company (SPAC) Churchill Capital IV Corp. According to TechCrunch, the SEC has requested certain documents from the company about the February-proposed, July-approved merger.
“Although there is no assurance as to the scope or outcome of this matter, the investigation appears to concern the business combination between the Company (f/k/a Churchill Capital Corp. IV) and Atieva, Inc. and certain projections and statements,” Lucid’s Form 8-K said. The company also reported that it is fully cooperating with the SEC.
Since shareholders approved the merger this summer, Lucid Group has begun delivering its first fully electric luxury vehicle, the Lucid Air, the tech news outlet reported. Additionally, the company announced plans to expand its Arizona production facility, partly for its “Project Gravity,” a luxury electric SUV that Lucid hopes to start production of in 2023.TechCrunch remarked that the increased use of SPACs to bring companies public has resulted in more corollary investigations. Reportedly, in the automotive space, a probe into Nikola Motors caused the founder’s resignation and three indictments on charges of fraud, while the SEC and the Department of Justice are currently investigating Lordstown Motors.
