Lucid Group (NASDAQ:LCID) has received a subpoena from the U.S. Securities and Exchange Commission (SEC) seeking documents related to an investigation of its blank-check deal earlier this year.
The news sent the share price of the luxury electric vehicle maker down 15% in pre-market trading.
"The investigation appears to concern the business combination between the Company (Churchill Capital Corp. IV) and Atieva Inc. and certain projections and statements," Lucid stated in a regulatory filing.
The special purpose acquisition company (SPAC) deal, which was completed earlier this year, was with veteran dealmaker Michael Klein's blank-check acquisition firm. It was one of the biggest in a string of SPAC deals that included electric vehicle makers such as Nikola (NASDAQ:NKLA) and Fisker (NYSE:FSR).
Founded in 2007 by former Tesla executive Bernard Tse and entrepreneur Sam Weng, Lucid Group plans to achieve a production target of 20,000 vehicles in 2022 and 50,000 in 2023.
It was funded initially by Chinese and Silicon Valley venture capital investors, with additional funding from backers such as state-owned Chinese auto maker BAIC Motor and Chinese technology company LeEco.
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