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Lucid Stock Tumbles As Luxury EV Maker Reveals SEC Subpoena Linked to SPAC Merger

Lucid, the luxury electric car maker, said the SEC is investigating "the business combination between the company and Atieva, Inc. and certain projections and statements."

Lucid Group  (LCID) - Get Lucid Group, Inc. Report shares slumped lower Monday after the upstart luxury electric carmaker said it received a subpoena from the U.S. Securities and Exchange Commission linked to a probe into its July merger with Churchill Capital. 

Lucid went public in July following a merger with Special Purpose Acquisition Company Churchill, a so-called a blank check company started by investment banker Michael Klein. Lucid was founded as Atieva in 2007 by former Tesla  (TSLA) - Get Tesla Inc Report executive Bernard Tse.

Lucid received about $4.4 billion in cash from the transaction, which faced last-minute challenges being approved due to difficulties communicating to retail investors holding the stock to vote, and valued Lucid at around $24 billion when it listed on the Nasdaq.

Lucid said the subpoena, which it received on December 3, asked for "the production of certain documents related to an investigation by the SEC"  that "appears to concern the business combination between the company (f/k/a Churchill Capital Corp. IV) and Atieva, Inc. and certain projections and statements." 

"The Company is cooperating fully with the SEC in its review," Lucid said in an SEC filing Monday.

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Lucid shares were marked 9.1% lower in late-morning trading Mondayto change hands at $40.00 each, a move that would still leave the stock more than 300% north of its $9.83 listing price. 

Last month, Lucid posted a smaller-than-expected third quarter loss in its first release as a public company and noted that Saudi Arabia's sovereign Public Investment Fund (PIF) is the group's majority shareholder, with a stake of around 1.02 billion shares.

Lucid said its adjusted loss for three months ending in September was pegged at 21 cents per share, with overall reservations rising to 13,000, or around $1.3 billion in total order book value.