November 29, 2022

EV maker Lucid receives SEC sapona on $ 24-bln blank check deal

December 6 (Reuters) – US Securities and Exchange Commission asked Lucid Group Inc. (LCID.O) For documents related to the investigation into its blank verification agreement, Shell joins the growing list of companies under scrutiny to liaise with companies.

Dec. Shares of the luxury electric car maker fell nearly 14% in pre-market trading on Monday after Sapona announced its acquisition from the U.S. Securities and Exchange Commission on the 3rd.

Lucid said in a regulatory statement that it was “concerned about the business dealings between the investigating agency (Churchill Capital Corp. IV) and Atieva Inc and some of the forecasts and reports”. Filed.

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The Lucid deal with senior dealmaker Michael Klein’s blank check acquisition company gave the consortium a $ 24 billion share value and was finalized earlier this year.

It is one of the largest in a series of deals with special purpose acquisition companies (SPACs), including electric vehicle makers such as Nicola Corp. (NKLA.O) And Fisker Inc. (FSR.N).

The California startup has been linked to several electric car makers, and is being investigated by federal companies and regulators as they rush to achieve production goals and catch up with Tesla Inc. (TSLA.O) It produces nearly 200,000 cars every quarter.

Nicola Corp is working with US regulators to pay $ 125 million in fines to its founder Trevor Milton for using social media to mislead investors again and again.

Lordstown Motors (RIDE.O) Its affiliation with DiamondPeak Holdings, an auto pre-order and blank check company, is being investigated. read more

Founded in 2007 as Atieva Inc by former Tesla executive Bernard DeSay and businessman Sam Weng, Lucid aims to reach the production target of 20,000 vehicles by 2022 and 50,000 by 2023.

Lucid received the $ 4.4 billion needed until the end of next year in September.

It was initially funded by Chinese and Silicon Valley venture investors, with additional funding from supporters such as state-owned Chinese automaker BAIC Motor and Chinese technology company LeEco.

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Report by Nivedita Balu in Bangalore; Editing by Amy Karen Daniel and Arun Coeur

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