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Lucid Faces SEC Probe About SPAC Acquisition

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A newly listed electric vehicle company, Lucid Motors (LCID) announced on Monday that it is under investigation by the SEC about the shell company that was made to take the company public without offering any IPO.

The company said that it received a subpoena on Friday from the SEC asking the company about certain aspects concerning its merger deal with the Churchill Capital Corporation IV which helped the company get listed in July with a market capitalization of $20 billion.

Lucid said that it received the subpoena "requesting the production of certain documents related to an investigation by the SEC."

The Saudi-owned company has recently was set up in 2007 and it was bought by Saudi Arabia's sovereign wealth fund in 2018. Lucid raised more than $4 billion after going public and it started to deliver its vehicles in late October. Its only car, the Luci Air Dream, is an all-electric sedan with a 520 miles range on a full charge. The range of the car puts it ahead of all the Tesla models and it won the MotoTrend car of the year award.

However, the stock of the company tumbled after the SEC probe news caught wind. The stock has been plunging since the end of November and is trading at $44.75, down $2.52 or 5.33% since the previous close at $47.27. The stock has dropped approximately 13% since the start of December

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