Lucid' s Latest Problem Is Scaring Investors CarBuzz News Features New Cars Used Cars Sell My Car Shopping Tools Car Reviews Car Finder Compare Cars Best Cars Car Dealerships Used Car Reviews Car Advice Home News Lucid' s Latest Problem Is Scaring Investors

Lucid' s Latest Problem Is Scaring Investors

Dec. 06, 2021 3:40 PM ET by Jay Traugott Industry News / 4 Comments Are the Feds involved? Oh yeah. This is not how the Lucid Group wanted to end things for the year. Shares of all-electric luxury vehicle startup took a nosedive by as much as 19.5 percent during trading today (Monday) after it disclosed that the US Securities and Exchange Commissions (SEC) has opened a probe into its SPAC deal which lead to it going public last July. The Feds are "requesting the production of certain documents related to an investigation… [specifically] the business combination between the company and Atieva, Inc. and certain projects and standards." Atieva was the special purpose acquisition company (SPAC) Lucid combined with to become a publicly-traded company. Lucid said in an official statement it is fully cooperating with the SEC review. Lucid Lucid Lucid Investors are still worried, as Lucid's tumbling stock value clearly shows. Deliveries of the first batch of the Lucid Air sedan, which received a very impressive 520-mile range rating by the EPA, got underway in late October. It's also been expanding its North American dealership network. But the fact that the SEC is investigating doesn't look good. The agency has investigated other EV startups that have gone public via SPAC deals, including Canoo, Lordstown Motors, and, perhaps, the most infamous of them all, Nikola. Nikola's CEO and co-founder, Trevor Milton, was forced to resign and is now facing possible jail time for alleged fraud. Lucid Lucid Lucid Opting for a SPAC route instead of the traditional IPO has become popular - especially for EV startups - because they offer a faster and cheaper way to go public. Investors like them because they get easier access to potentially high-value companies. Companies who've chosen the SPAC method are often more inclined to highlight big financial projections as selling points. Until now, Lucid was doing quite well with a market capitalization of almost $78 billion. Yes, that's in the same neighborhood as GM and Ford. Additional details of the SEC's Lucid Motors probe remain under lock and key for now, but investors are going to want some answers sooner rather than later. Lucid Lucid Lucid

Join The Discussion

Show Comments (4)

Gallery

10 Photos Tags: #Lucid Motors News #Electric Vehicles #Government #Industry News #Luxury

Related Cars

Lucid Air LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top