Shares of Lucid Motors fell on Monday morning when the electric car maker revealed it had been slapped with a subpoena as part of an investigation into the merger that took Lucid public earlier this year.
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“On December 3, 2021, [Lucid] received a summons from [Securities and Exchange Commission] requesting the production of certain documents related to an investigation by the SEC,” Lucid, formerly known as Ativa, said Monday in a Disclosure Filed with the SEC.
“While there is no assurance as to the scope or outcome of this case, the investigation appears to be related to a business combination between the company (f/k/a Churchill Capital Corp. IV) and Atieva, Inc. and certain estimates and statements.”
Lucid said it was “fully cooperating” with the investigation. Churchill did not immediately return the Post’s request for comment.
The stock fell nearly 14 percent and was last seen trading at $40.72 per share in pre-market trading.
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Prior to that, Lucid stock nearly doubled in November amid a boom in all-electric car stocks, giving Lucid a market valuation of about $76 billion, similar to auto industry giant Ford — even though Lucid had recently sold out. Have just started delivering your first cars. ,
Lucid went public earlier this year through one of the largest special purpose acquisition company deals ever, in which a publicly traded blank-check company merges with a privately held firm, Which then replaces the blank-check company in the public markets.
Lucid went public through veteran dealmaker Michael Klein’s merger with Churchill Capital Corp IV, which gave Lucid a pro-forma equity value of $24 billion.
SPAC mergers exploded in popularity over the past two years and became particularly common in the electric vehicle start-up space, with Nikola, Fisker and Lordstown all merging with SPAC.
But SPAC is often criticized by those who say it is a way for companies to go public, while an initial public offering avoids investor scrutiny and offers rosy projects that are not necessarily reality. be tied to
Since going public, both Nicola and Lordstown have become the target of federal scrutiny, providing fodder to critics of the financial instrument.
It is not clear what aspects of Lucid’s merger with Churchill Capital are being investigated, although earlier this year the SEC suggested they move an investigation into accounting practices in the SPAC merger, temporarily heated. Will block the market.
But in the months since, SPACs have gained steam once again, bringing dozens of companies to the public markets.