AUTOMOBILE

SEC Subpoenas Lucid: Stock Instantly Tanks

Yet, another Special Purpose Acquisition Company, or SPAC, EV startup may be in the Securities and Exchange Commission’s crosshairs. Lucid Group has just been subpoenaed for documents related to the SEC’s investigation into the blank-check deal. The Lucid SPAC was done with Churchill Capital Group and was completed in early 2021. 

Lucid followed the same means for acquiring capital as has Nikola Group, Lordstown Motors, and Fisker. This has become the go-to avenue for startups with no products and in many cases no assembly plants or infrastructure. These shell entities are under much heavier scrutiny as of late by the SEC. “Ever since the statements made by Nikola’s founder and former CEO resulted in three federal criminal fraud charges, new EV manufacturers were bound to face greater scrutiny,” CFRA analyst Garrett Nelson told Reuters.


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