Lucid (LCID) shares opened 12% lower on Monday after the high-end electric vehicle startup revealed it received a subpoena from the Securities and Exchange Commission (SEC) over its recent tie-up with a special purpose acquisition company.
Lucid received a request for "the production of certain documents related to an investigation by the SEC," according to a regulatory filing.
The inquiry is related to the startup's merger with Churchill Capital Corp IV "and certain projections and statements."
"The Company is cooperating fully with the SEC in its review," said the filing.
Lucid went public on July 26 upon merging with Churchill Capital IV, a special purpose acquisition company (SPAC). That day LCID closed at $26.83.
Even prior to the listing, Lucid was closely watched and followed by retail traders. Earlier this year, Churchill Capital IV saw its stock surge on early speculation of a deal with the electric vehicle startup.
In September Lucid's stock soared after the company's Dream Air edition vehicle received an EPA rated range of 520 miles. That's about 100 miles more than Tesla's (TSLA) model S Long Range.
Lucid showcased the first deliveries of its luxury vehicle in late October at an event in California.
Only a handful of analysts cover Lucid. The stock has 2 Buy and 1 Sell recommendations.