Why Lucid Stock Has Been Tanking This Week

Shares of high-flying EV start-up Lucid Group (NASDAQ: LCID) took a hit this week after the company surprised investors with more than one piece of news. Even with a bounce on Friday morning, shares have dropped by about 20% since last Friday's close, according to data provided by S&P Global Market Intelligence.

Lucid stock had been soaring after a busy month that included delivering its first cars to customers, reporting its third-quarter financial results, and having its initial product deemed MotorTrend's 2022 Car of the Year. But this week, the company disclosed it has received a subpoena from the Securities and Exchange Commission (SEC) and announced separately that it was raising $1.75 billion in new capital through a convertible notes offering. Lucid CEO and chief technology officer Peter Rawlinson also sold almost $30 million in stock at a share price above $47. That represented only about 1.5% of his holdings, however, and likely was not a factor for investors.

Source Fool.com