Electric vehicle (EV) wonder Lucid Motors (NASDAQ:LCID) is tumbling today after news broke of a subpoena from the U.S. Securities and Exchange Commission (SEC). Lucid Motors price predictions are a hot commodity today in the wake of the foreboding news. Consequently, LCID stock is down nearly 8% on the day so far.
The investigation seems to be pointed at Lucid’s special purpose acquisition company (SPAC) merger that brought Lucid public this past July. It’s currently unclear what specifically the SEC is probing, but the announcement has cast a mysterious shadow over SPACs everywhere as investors wait to hear more.
As a recap, Lucid announced it would be going public via SPAC merger with blank-check company Churchill Capital Corp. IV in February. The announcement was fortuitous for Churchill shares. The soon-to-be LCID stock saw a more than a 500% increase in a matter of weeks on the news.
SPAC mergers are the new hot ticket in the world of initial public offerings (IPOs). This season saw a record level of SPAC IPOs. This recent SEC investigation puts worrisome pressure on many SPACs with fears that the party may be over.
EVs in general are having a mixed day today. Lucid and Tesla (NASDAQ:TSLA) are down 4% and 0.8%, respectively, while Volta (NYSE:VLTA), Rivian (NASDAQ:RIVN) and Nikola (NASDAQ:NKLA) are enjoying fairly sizable upticks.
Following the investigation news, all eyes are on Lucid. Will its historically high price targets hold up under the investigation?
Lucid Motors Price Predictions: Will the Investigation Slow Down Lucid’s Hype Train?
With Lucid currently sitting at $44.14, let’s see where the experts think it’s heading.
- The analysts at CNN Business have Lucid undergoing fairly steady, moderate growth through the next year. They set a 12-month price target of $57, for a roughly 29% increase from it’s current value.
- Wallet Investor is a bit more bullish on Lucid. Citing technical analysis, it has a one-year forecast of $74.15 and a five-year forecast of $155.50.
- Gov Capital has even higher expectations for MotorTrend’s 2022 Car of the Year company. It sees LCID stock hitting $137.85 within a year and $905.65 after five years.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.