Lucid Group Sued by Investor Over Production Hype, SPAC Merger

An investor sued Lucid Group Inc. in Delaware over allegations that company leaders falsely hyped its production timeline before and after the electric vehicle maker went public last year through a reverse merger with a Saudi-backed blank-check company.

The lawsuit, filed Monday, seeks internal files from Lucid to investigate claims that CEO Peter Rawlinson promoted the combination, then later inflated the company’s stock price, by exaggerating its manufacturing capacity with bogus claims about its ability to withstand supply chain challenges.

“Not only were Rawlinson’s statements false, they were ridiculously false,” the suit says.

When Lucid disclosed it would make only ...