The Lucid Air sedan, which is expected to go into production next year at a factory being built in Arizona.
Lucid
Electric vehicle company Lucid Motors intends to be listed on the stock at a combined equity value of $ 11.75 billion and a pro-forma value of $ 24 billion, through a reverse merger with a check company. empty started by veteran investment banker Michael Klein.
The agreement between Newark, California, Lucid and Churchill Capital Corp IV is the largest of a series of such links involving electric vehicle companies and vacuum inspection firms, also known as special purpose procurement companies or SPACs. .
The former SPAC handles EV start-ups such as Nikola, Fisker and Lordstown Motors, which have obtained pro-forma valuations of less than $ 4 billion, but Lucid is further than those companies. Lucid is set to deliver its first vehicle – a luxury sedan called the Air – this spring.
The deal will generate approximately $ 4.4 billion in cash for expansion plans for Lucid, including the current plant in Arizona.
CCIV shares fell about 30% to $ 40 in extended trading.
Lucid is led by former Tesla engineering executive and veteran carmaker Peter Rawlinson, who joined the company as chief technology officer in 2013 before adding his CEO to his responsibilities in April 2019. He will continue in those roles after the expected deal closes. second quarter, according to companies.
Lucid was founded in 2007 as Atieva, a name it now uses for its engineering and technology arm that supplies batteries to the Formula E racing circuit. The company first focused on electric battery technology before changing its name. and move to an electric vehicle manufacturer in 2016., three years after Rawlinson joined the company to lead the development of its technology.
Lucid had some difficulty raising capital to fund his plans until September 2018, when he received $ 1 billion from Saudi Arabia’s sovereign wealth fund.
Rawlinson last year described SPAC transactions as fast money, but not enough capital to bring a vehicle into domestic production, prompting companies such as Fisker to look for contract manufacturers.
Prior to the announcement with Klein, Rawlinson said the company had funding to start air production at a plant in Casa Grande, Arizona, which is located southeast of Phoenix.
The new funding is expected to assist Lucid in its expansion plans. Rawlinson expects Air to be the catalyst for a range of future all-electric vehicles, including an SUV that begins production in early 2023 and more affordable vehicles on the line.
Lucid currently has almost 2,000 employees, it is expected that 3,000 employees will be added in the US domestically by the end of 2022, according to the company.
The agreement includes a total investment of about $ 4.6 billion. It is funded by $ 2.1 billion in cash from CCIV and a $ 2.5 billion PIPE fully committed at $ 15 per share by the Saudi sovereign wealth fund, as well as funds and accounts managed by BlackRock, Fidelity and others.