Lucid Motors CEO Peter Rawlinson on Tuesday called what the electric car company called “world-class technology”, but acknowledged the challenges of car production.
Rawlinson, a former Tesla engineering executive, appeared on CNBC this morning after Lucid announced a reverse merger with special-purpose acquisition company Churchill Capital Corp IV to go public. It is the largest SPAC transaction involving an EV company. SPACs are an alternative to initial public offerings for companies wishing to become publicly traded shares.
CCIV shares sank nearly 48 percent to $ 30 a share early Tuesday in trading before recovering some of those losses, giving the merged company a market value of more than $ 50 billion, according to Reuters, May bigger than Ford Motor. By comparison, Tesla’s direct competitor has a market capacity of over $ 637 billion.
Ahead of Monday night’s announcement and the subsequent decline in equities, recent speculation in the transaction has raised the CCIV by 470% this year alone. Upon completion of the transaction, seen in the second quarter, Lucid is expected to be listed on the New York Stock Exchange under the LCID check mark.
“I think the valuation is a reflection of our technology,” Rawlinson said, adding that more needs to be done for Lucid to generate return on investors. “What we need now is to execute with humility and diligence and put this into production. That is what will really drive the value,” he said, acknowledging that making a mass-scale electric car is a difficult endeavor.
Deliveries of Lucid’s first car, the all-electric Air, are now set for the second half of this year, a delay from the previous forecast. Production will take place at a plant the company built in southeastern Phoenix in Casa Grande, Arizona. Air starts at $ 77,400, not including the federal tax credit for electric vehicles.
Lucid projects it will earn $ 2.9 billion in EBITDA or earnings before interest, taxes, depreciation and amortization in 2026, according to an investor presentation. It plans to deliver 251,000 vehicles that year. In addition to Air luxury, Lucid plans to start producing an SUV in 2023 and eventually “more affordable” vehicles on the road. The batteries manufactured by the Lucid technology division, Atieva, are currently used on the Formula E electric racing circuit.
“I think we have an ambitious plan, but still achievable. We have shown that we can execute,” Rawlinson said. “If you look at the factory we built today, we did it in record time.”
Rawlinson also spoke about the experience of executives and managers around him, including those who stopped their careers at companies such as Tesla and Apple. The presentation of the investors stated that former officials of traditional car manufacturers such as Mazda, Ford and Audi are also on board.
“We have the expertise. We have a track record in delivery,” said Rawlinson, who worked on the Model S while at Tesla. “What is really important now, however, especially in the coming months, is to introduce our first product in production. This is the great sunflower. “