Shares of electric vehicle (EV) maker Lucid Motors (NASDAQ:LCID) are on the downtrend again today. At the time of writing, LCID stock has dropped around 1%, in line with many of its peers, as investors await the House of Representatives vote on the debt ceiling bill.

Outside of macro conditions, there are other reasons for today’s decline in LCID stock. One of the most pertinent company-specific headwinds Lucid is facing is its decision to switch auditors, a move announced in an 8-K filed today.

This switch will result in KPMG taking over the auditing reigns from Grant Thornton, a move that investors appear to be watching closely. Lucid’s management team noted that there were no “disagreements with Grant Thornton” or “reportable events” which led to this separation. Additionally, Grant Thornton did not produce consolidated financial statements that contained “an adverse opinion or disclaimer of opinion,” suggesting that the split was somewhat amicable.

Let’s dive into what may be behind this move and what may be behind today’s decline in this EV producer.

LCID Stock Sinks on Auditor Switch

There are many reasons why companies can choose to switch auditors. One of the most common reasons companies’ audit committees often do so is in dispute of a material restatement of financial statements, which doesn’t appear to be the case here.

Another common reason for a company to make a switch is related to audit fees and the five-year window in which companies must switch independent auditors (according to the Sarbanes-Oxley Act). If a given auditor’s fee becomes elevated relative to the competitors (which may be willing to offer a lower fee to generate additional business), a company may make a switch. That could entirely be the case here.

Of course, there are other outside possibilities that could drive a switch, including an unforeseen conflict of interest or other issues beneath the surface. With no indication that this is the case, it appears this switch is simply routine, and any selling in LCID stock today may be due to other factors.

On the date of publication, Chris MacDonald 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.