EV maker Lucid shares fell almost 20% amid SEC probe

• Lucid received a subpoena from SEC related to an investigation into its blank-check deal

• Other EV startups that went public through SPAC also fell on Monday

Shares of Lucid Group Inc fell as much as 19.5% on Monday after the U.S. securities regulator asked the company for documents related to an investigation into its blank-check deal.

The luxury electric-car maker received a subpoena from the U.S. Securities and Exchange Commission (SEC) on December 3.

"The investigation appears to concern the business combination between the Company (Churchill Capital Corp. IV) and Atieva Inc and certain projections and statements," Lucid said in a regulatory filing.

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The SPAC merger of Lucid with dealmaker Michael Klein’s blank-check company value the combined company at $24 billion—one of the biggest SPAC deals.

Impact on other EV makers

Other EV startups that went public through SPAC also fell on Monday including Canoo Inc and Faraday Future Inc.

As EV makers prepare to compete against Tesla Inc, many have opted for market listing via SPAC and have also come under scrutiny by regulators.

Nikola is charged with a penalty and is working to settle a charge against founder Trevor Milton. Meanwhile, Lordstown Motors is also under investigation for its SPAC merger and vehicle pre-orders.

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The SEC has also opened an investigation into Tesla after a whistleblower complained on fire risks related to solar panel system defects.

Picture Credits: Reuters