Lucid Group nosedives amid $1.75B senior notes sell-off and SEC subpoena
Yahoo Finance Live anchors Zack Guzman and Akiko Fujita look at EV developer Lucid Group's plunge amid sell-offs of convertible senior notes and an SEC subpoena over its SPAC deal.
Video Transcript
AKIKO FUJITA: Let's turn our attention to one stock that is seeing a big sell-off in the session today. That is luxury EV maker Lucid, down about 11 and 1/2% after the company announced a $1.75 billion offering in convertible senior notes. Now the notes due in 2026 will be sold to institutional buyers in a private offering, and Lucid saying initial buyers will have the option of buying an additional $262 million in those notes.
The company says it plans to use the proceeds to finance or refinance one or more new or existing eligible green investment. So that includes development or manufacturing or distribution of products. But it's been a bit of a bumpy road, Zack, for Lucid this week. Remember earlier this week, the company got a subpoena from the SEC to investigate its SPAC merger with Churchill Capital. That led to more downside for the stock. And today, it's down more than 11%.
