The US securities regulator has requested Lucid Group Inc. for paperwork associated to an investigation into its blank-check deal, becoming a member of a rising listing of firms which have come underneath scrutiny for his or her merger with shell firms.

Shares of the luxurious electric-car maker fell about 14 % in pre-market buying and selling on Monday after disclosing that it had obtained a subpoena from the US Securities and Change Fee on Dec. 3.

“The investigation seems to concern the enterprise mixture between the Firm (Churchill Capital Corp. IV) and Atieva Inc. and sure projections and statements,” Lucid stated in a regulatory submitting.

Lucid’s take care of veteran dealmaker Michael Klein’s blank-check acquisition agency had given the mixed firm a pro-forma fairness worth of $24 billion and was accomplished earlier this 12 months.

It was one of many largest in a string of offers with Particular Goal Acquisition Firms (SPACs) that included electrical automobile makers equivalent to Nikola Corp. and Fisker Inc. 

The California startup joins many different electric-car makers being investigated by federal companies and regulators as they rush to satisfy manufacturing targets and meet up with Tesla Inc. which is producing almost 200,000 vehicles each quarter.

Nikola Corp. is working with US regulators to pay a $125 million penalty to settle a cost towards its founder Trevor Milton for utilizing social media to repeatedly mislead buyers.

Lordstown Motors is being investigated for automobile pre-orders and its merger with blank-check firm DiamondPeak Holdings.

Based in 2007 as Atieva Inc. by former Tesla govt Bernard Tse and entrepreneur Sam Weng, Lucid is aiming to realize manufacturing goal of 20,000 autos in 2022 and 50,000 in 2023.

Lucid had in September secured $4.4 billion it wanted till the tip of subsequent 12 months.

It was funded initially by Chinese language and Silicon Valley enterprise buyers, with extra funding from backers like state-owned Chinese language auto maker BAIC Motor and Chinese language expertise firm LeEco.