Lucid Motors Becomes the Latest Upstart EV Company To Get Investigated by the SEC

Lucid Air 6 photos
Photo: Lucid
Lucid Air DeliveryLucid Air Dream EditionLucid FactoryLucid Air Dream EditionLucid Air Dream Edition
The past two years have seen some of the most anticipated brands going public with the help of SPACs. Now, Lucid might be in hot water over the one they joined to go public earlier this year.
A SPAC or a Special Purpose Acquisition Company is a firm specifically designed to help companies go public while not requiring the same standards as a typical IPO. The SPAC involved with Lucid's deal seems to be at the heart of the investigation.

In a filing with the SEC, Lucid said, "Lucid Group, Inc. (the “Company”) received a subpoena from the Securities and Exchange Commission (the “SEC”) requesting the production of certain documents related to an investigation by the SEC.

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 (Churchill Capital Corp. IV) and Atieva Inc and certain projections and statements

This is just the latest in a series of SEC investigations that have found some significant misdeeds in the startup EV community. The SEC is currently investigating CANOO, Lordstown Motors, and Nikola over similar SPAC deals.

Results from these investigations are serious too. For example, the founder of Nikola has already been indicted on charges stemming from that investigation. In addition, Lordstown's CEO has resigned due to misleading statements he made about EV truck pre-orders.

As we await further information from the SEC and the scope of their investigation, Lucid has seen its capital take a big hit. Just this month, they had seen their stock price rise to more than $55. As of this writing, it's dropped at just $44.

The SEC has yet to respond to a request for comment. We'll keep you posted, though, as news comes in on the latest EV company to actually bring a car to market.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories