By Dhirendra Tripathi
Investing.com – Lucid Group stock (NASDAQ:LCID) plunged 15% in Monday’s premarket trading as the company disclosed the SEC has asked for documents pertaining to the company’s merger with blank-check firm Churchill Capital.
The maker of luxury electric vehicles said the December 3 subpoena from the Securities and Exchange Commission pertains to certain projections and statements surrounding the combination. It said it is cooperating fully with the SEC in its review.
Lucid's deal with dealmaker Michael Klein's SPAC had given the combined company a pro-forma equity value of $24 billion and was completed in July.
Lucid Motors was founded in 2007 as an EV battery-maker called Atieva by former Tesla (NASDAQ:TSLA) executive Bernard Tse and entrepreneur Sam Weng. It aims to produce 20,000 vehicles in 2022 and 50,000 in the following year.
Less than three months ago, the Environmental Protection Agency certified that the range of the company's Air Dream Edition Range of cars outstrips any other in the EV space, including the most popular Tesla.
Lucid’s 19-inch wheel secured a rating of 520 miles on one full charge, making it the longest-range EV ever rated by the body. That title till then belonged to Tesla's Model S Long Range Plus.
Lucid joins EV-makers like Nikola (NASDAQ:NKLA) and Lordstown Motors (NASDAQ:RIDE) who also landed in the crosshairs of the regulators. Nikola is working with U.S. regulators to pay $125 million to settle a charge against its founder Trevor Milton that he misled investors. Lordstown is under probe by the department of justice.