EV automaker Lucid Group investigated by SEC – Gadgets Price - Gadgets Price
EV automaker Lucid Group investigated by SEC – Gadgets Price
EV automaker Lucid Group investigated by SEC – Gadgets Price

Lucid Group has been sued by securities regulators investigating the electric automaker’s merger, turning it into a publicly traded company.

Lucid said in a regulatory filing Monday morning that the Securities and Exchange Commission has requested certain documents related to its investigation.

“While there is no certainty as to the scope or outcome of this case, the investigation appears to relate to the business combination between the company (f/k/a Churchill Capital Corp. IV) and Atieva, Inc. and certain forecasts and statements,” Lucid’s regulatory filing says.

Lucid said it is fully cooperating with the SEC in its assessment.

Shares of Lucid fell more than 9.5% on the news.

In February, Lucid Motors announced it had reached an agreement to become a publicly traded company through a merger with special acquisition company Churchill Capital IV Corp. At the time, it was considered one of the biggest deals between a blank check company and electric vehicle startup.

Shareholders approved the merger between Lucid Motors and Churchill Capital IV in late July, after the companies extended the deadline by one day because not enough private investors showed up to cast their votes. The company is now called Lucid Group.

Since then, Lucid Group has begun delivery of its first all-electric luxury vehicle, the Lucid Air, and has announced plans to expand its Casa Grande, Arizona facility by 2.7 million square feet. Some of that expansion will be used for Project Gravity, a luxury electric vehicle SUV that is scheduled to enter production in 2023.

SPACs, a financial tool that came back into vogue two years ago, has been framed as a better, faster way for companies to go public. A number of venture capitalists have also jumped into the SPAC game, helping to speed up the pace of deals. But that has also led to regulators taking a closer look at some of these mergers. At least three mobility-related SPAC mergers have been scrutinized by the SEC. Regulators’ investigations into Nikola Motors led to the founder’s resignation and three charges of fraud. Lordstown Motors is under investigation by the SEC and the Justice Department.

Leave a Reply

Your email address will not be published.