Lucid Motors drops as luxury electric vehicle maker receives SEC subpoena

• Lucid Group shares dropped Monday to a one-month low after the company said it received a subpoena from the SEC.
• The SEC's investigation appears focused on the tie-up between Lucid and Atieva.

Lucid Group sharply dropped Monday after the luxury electric vehicle maker said it's received a request for information from the Securities and Exchange Commission, a move coming a few months after the company went public through a multi-billion SPAC deal.

Lucid was down by 7% in afternoon trade after sliding much as 19% to $38.06, the lowest price since November 5. The selloff was ignited after the company in a regulatory filing said the SEC on December 3 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 (f/k/a Churchill Capital Corp. IV) and Atieva, Inc. and certain projections and statements," Lucid said in its filing. It said it is fully cooperating with the SEC in its review.

The startup's shares began trading on July 26 after shareholders of special purpose acquisition company Churchill Capital Corporation IV approved its merger with Lucid. Lucid Motors was founded as a battery company called Atieva by former Tesla executive Bernard Tse and entrepreneur Sam Weng in 2007.

Lucid raised $4.4 billion in its SPAC merger, with the funds aimed at helping it compete with Tesla and other EV makers.

Monday's intraday low marked a 33% decline from the stock's most recent high of $56.70. Year to date through Friday, Lucid shares had gained about 372%.