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Lucid intends to target an extremely high car market.
Kindness Lucid Motors
The potential merger between the special purpose procurement company
Churchill Capital Corp IV
and the EV Lucid Motors startup seems to be one of the worst kept secrets on Wall Street.
Churchill stock (marker: CCIV) rises again after another report that a merger announcement was imminent. However, none of the companies is ready to confirm the agreement.
Churchill shares rose about 30% to $ 52 on Tuesday afternoon trading. Shares traded below $ 37 earlier in the day. The stock was shut down for short periods due to volatility.
The deal is said to be worth about $ 12 billion to Lucid. Churchill has about $ 2 billion in cash on his books, which means he will get about 17% of the new company. This is a very tough guide and will change when details or agreement details appear.
With Churchill shares trading at $ 52, Lucid’s default and present value could be more than $ 40 billion. Most SPAC transactions are based on the unit price of $ 10 at which SPAC issues shares.
It is simply not clear whether the $ 12 billion figure is today’s valuation or the valuation at which the transaction is being made. There are only too few details. Churchill and Lucid were not immediately available to comment on today’s report.
Manufacturer EV
Fisker
(FSR), by comparison, is valued at about $ 6 billion, based on the 294 million shares outstanding, fully diluted. Fisker plans to offer an approximately $ 40,000 SUV for sale around 2022.
Lucid intends to target an extremely high car market. It will start with an aspirational EV model, which could cost more than $ 165,000 and boasts 1,080 horsepower, fast charging time and a range of over 500 miles on a single charge. The first state-of-the-art Lucids could hit the streets later this year before the company produces luxury cars in 2022.
Expectations for Lucid products are high. Churchill’s stock has risen more than 400 percent in the past three months, crushing comparable profits
S&P 500
and
Dow Jones Industrial Average.
Write to Al Root at [email protected]