The Lucid motor.
The company went public through a multi-billion dollar SPAC deal, but it's been a few months since it received a request for information from the Securities and Exchange Commission.
In the premarket session, the stock fell as much as 16% to $39.61, but recovered slightly to lose 14.0%. The stock has increased in value by 372%.
The company in a regulatory filing said the SEC requested certain documents from the company as part of an agency investigation.
"Although there is no assurance as to the scope or outcome of this matter, the investigation appears to concern the business combination between the Company and Atieva, Inc. and certain projections and statements." It said it is cooperating with the SEC.
The startup's shares began trading on July 26 after shareholders of a special purpose acquisition company approved its merger with Lucid. The battery company Atieva was founded in 2007, by Bernard and Sam Weng.
The funds raised in the merger were intended to help the company compete with other EV makers.
Business Insider has an original article.
