Oh dear, Lucid is in trouble
It’s being subpoenaed by the SEC
Lucid Motors went public with a Special Purpose Acquisition Company (SPAC), not an Initial Public Offering (IPO), this is an important difference. In short, the IPO is a traditional tool companies use to be listed in the stock exchange, and it has stringent requirements. On the other hand, the SPAC is a more modern tool, it allows company XY (private) to merge with company XZ (public) as a shortcut to the stock exchange.
The U.S. Security and Exchange Commission (SEC) doesn’t like SPACs, mainly because there are fewer checks, which means that a significant number of SPACs end up being investigated. This is what’s happening to Lucid Motors, the California-based EV company that launched the Lucid Air.
The SEC is requesting documents related to “an investigation into its blank-check deal“… with a subpoena. Which means Lucid will have to present said documents in court.
Lucid went public in July 2021, with a $24bln valuation even though, this is a common thread, they hadn’t actually delivered any vehicles back then. Lucid share price ($LCID) was down %14 yesterday.
This is probably more fuel for the fire that people who don’t like EVs are trying to ignite. And I can see why. Lucid, just like Nikola, Mullen and plenty more, is yet another start-up that went public and gained value overnight before actually delivering a single vehicle. I wouldn’t include Rivian in this conversation, though, mostly because of the binding Amazon deal, and the enormous amount of money they received in funding. Again, mostly because of Amazon.
What do you think? Let me know your thoughts in the comments.