Lucid Motors has confirmed that it’s going public by way of a merger with Churchill Capital IV (CCIV). The deal, which is predicted to shut within the second quarter, is alleged to be the most important so far between a SPAC and an EV startup.
The transaction values Lucid at an preliminary pro-forma fairness worth of about $24 billion, and a transaction fairness worth of $11.75 billion. It’s anticipated to depart Lucid with roughly $4.4 billion in money. Saudi Arabia’s sovereign funding fund will proceed to be the most important shareholder.
Of the present wave of EV startups, Lucid has been maybe probably the most closely-watched, because of its high-profile CEO (Peter Rawlinson was the Chief Engineer for Tesla’s Mannequin S) and secure of deep-pocketed backers, which additionally consists of Wall Avenue dealmaker Michael Klein and funds managed by BlackRock. Reuters referred to as Lucid “one of many strongest of the flock of startups difficult Tesla’s dominance.”
Hypothesis over the deal been circulating for greater than a month, driving up Churchill Capital’s share value to lofty heights. As soon as the deal was introduced, the “purchase the rumor, promote the actual fact” phenomenon kicked in, and CCIV dropped over 30%.
Lucid plans to start manufacturing and deliveries of the Lucid Air in North America within the second half of this 12 months. The Air is slated to reach in Europe in 2022, adopted by China in 2023. The Gravity, a efficiency luxurious SUV, is deliberate for 2023. The corporate will use the brand new funding to deliver these two automobiles to market, and to develop its Arizona manufacturing unit. The preliminary part of the $700-million pant has a capability of 30,000 automobiles per 12 months, and Lucid plans to develop it in one other three phases within the coming years to an eventual capability of 365,000 items.
Lucid additionally aspires to provide EV applied sciences to different OEMs, and to supply stationary storage options within the residential, industrial and utility markets.