Electric car maker Lucid sues SEC on $ 24 billion blank check deal

December 6 (Reuters) – The US Securities and Exchange Commission has asked Lucid Group Inc (LCID.O) for documents related to an investigation into the blank check agreement, and joins a growing list of companies that have been investigated for their merger with shell companies.

Shares of the luxury electric car maker fell about 1[ads1]3% on Monday after the company revealed that it had received a subpoena from the US Securities and Exchange Commission (SEC) on December 3.

“The investigation appears to be about the business combination between the company (Churchill Capital Corp. IV) and Atieva Inc and certain estimates and statements,” Lucid said in a regulatory filing.

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Lucid’s deal with veteran dealer Michael Klein’s blank check acquisition firm earlier this year had given the combined company a pro-forma equity value of $ 24 billion.

It was one of the largest in a series of agreements with Special Purpose Acquisition Companies that included electric car manufacturers Nikola Corp (NKLA.O) and Fisker Inc (FSR.N).

The SEC declined to comment on the action against Lucid.

Shares in other startups of electric vehicles, including Canoo (GOEV.O), Faraday Future (FFIE.O) and Fisker (FSR.N) were also hit by early trading.

Lucid joins several other electric car manufacturers being investigated by federal agencies and regulators as they rush to reach production targets and catch up with Tesla Inc (TSLA.O), the world’s most valuable automaker.

Nikola is collaborating with U.S. regulators to pay a penalty and settle a lawsuit against founder Trevor Milton for using social media to repeatedly mislead investors, while Lordstown Motors (RIDE.O) is being investigated for vehicle pre-orders and merging with a peel. company.

“Ever since the statements from Nikola’s founder and former CEO resulted in three federal criminal fraud allegations, new EV producers have had to face greater scrutiny from regulators trying to protect investors,” said CFRA analyst Garrett Nelson.

However, Lucid’s long-term goals were “reasonable”, and there were positive reviews of the first model, the Lucid Air, Nelson said.

Meanwhile, the SEC has opened an investigation into Tesla following a whistleblower complaint about fire risk associated with defects in solar panels over several years. read more

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Reporting by Nivedita Balu and Tiyashi Datta in Bengaluru; Additional reporting by Katanga Johnson in Washington; Edited by Amy Caren Daniel and Arun Koyyur.

Our standards: Thomson Reuters Trust Principles.

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