Lucid Stock Dropped After SEC Subpoena
Regulatory Scrutiny
Based on a SEC filling on Monday, the EV startup Lucid disclosed that it had received a subpoena from the Securities and Exchange Commission (SEC) requesting the production of certain documents related to an investigation by the US agency. [1]
As per Lucid, "the investigation appears to concern the business combination between the Company (f/k/a Churchill Capital Corp. IV) and Atieva, Inc….". Lucid also said that it is cooperating fully with the SEC.
Lucid Group, Inc debuted on Nasdaq on July 26 2021 via an SPAC merger with Churchill Capital Corp. IV, under which it raised $4.4 billion. [2]
Recent Developments
Lucid is one of the hottest start-up in the EV arena and has already produced some notable achievements, such as the Car of the Year 2022 by MotorTernd for its first vehicle, the Air model [3] and the official EPA rating of 520 miles of range for the Air Dream Edition R [4].
It started delivering its first vehicles on October 30th [5], while on November 15 it released its financial results for the third quarter of the year.
Stock Movement
LCID.us had jumped to multi-month highs (57.83) after the November Q3 results, but has been facing headwinds since and yesterday was its fifth straight losing day.
The stock plunged as low as 37.99 due to the SEC news on Monday, but managed to react and closed the day with a more modest loss of around 5% - well above 38.2% Fibonacci of the "September Low/November High" rise (41.93).
Above that and given the fact that broader sentiment is improved so far today with NAS100 on the green, LCID.us may find the opportunity to push back above 50.00, but it may be early to try for fresh highs (57.83)
Its recent poor performance has put immediate risk to the downside and a return back towards 37.99-02 could be in the cards, but a new catalyst is likely needed for bigger decline and a breach of the ascending trend-line form September's low (sub-30.00).
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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