Lucid Motors strikes SPAC deal to go public with $24 billion valuation – TechCrunch

Lucid Motors has agreed to become a publicly traded company through a merger with. The special acquisition company Churchill Capital IV Corp has the largest deal ever between a blank check company and an electric vehicle startup.

The trading share value of the merged company, in which the Saudi Arabian sovereign wealth fund remains the largest shareholder, will be $ 11.75 billion. Private investment in public equity trading costs $ 15 per share, and proforma equity is worth $ 24 billion. The announcement will be made more than a week after Bloomberg, citing an unnamed source. Reported the transaction It was nearing completion.

Lucid, albeit of low value, follows the SPAC merger with an electric vehicle start-up announced this year. arrival, Canoe, Fisker Inc. and Lordstown Motors. Some EV infrastructure companies, including EVgo and ChargePoint Become a public company Through the SPAC merger.

Lucid may have been the most anticipated. Weeks of rampant hype and speculation have pushed Churchill Capital IV Corporation’s share price by more than 470% from its $ 10 per share opening since January 2021. The stock price surge was announced.

Private investment and cash from Churchill will provide Lucid with a total of approximately $ 4.4 billion. That capital will be used to speed up and expand Lucido’s plans. The company plans to begin production and delivery of Lucid Air in North America in the second half of this year. Air will come to Europe in 2022, followed by China in 2023. A high-end gravity SUV will be launched in North America in 2023. The vehicle will be produced at the new plant. In Casa Grande, Arizona.

The funds will be used to bring these two vehicles to market and to expand the plant. Arizona, Lucid CEO and CTO Peter Rawlinson said on Monday. The company plans to expand its plant to three more phases over the next few years, with the capacity to produce 365,000 units annually on a large scale. The initial phase of the $ 700 million plant was completed at the end of last year and is capable of producing 30,000 vehicles annually.

Lucid Motors Air EV

Image credit: Lucid Motors

The deal also helps Lucido realize its vision of supplying electric vehicle technology to third parties such as other automakers and providing energy storage solutions in the residential, commercial and utility segments, Laurinson said. It was.

Expanding the size of an electric vehicle company is neither cheap nor easy. Lucido missed the implosion slightly a few years ago as he struggled to find an investor who would provide the capital needed to produce a super-luxury electric air sedan.The investor eventually became a Saudi Arabian sovereign wealth fund in September 2018. Invest $ 1 billion in Lucid Motors..

Lucid started in 2007 as Atieva, a company founded by former Tesla Vice President and Director Bernard Tse and entrepreneur Sam Weng, focused on the development of battery technology for electric vehicles. Early research, development, and final progress in components and overall electrical architecture lay an important foundation for future Lucid, which emerged at the end of 2016 with the new publicly stated purpose of building electric vehicles. Probably (the company was already working, but now it’s quiet for a few years). Rawlinson, who left Tesla to join Lucid as CTO in 2013, was one of the driving forces behind this new mission. He later took on the title and responsibilities of the CEO.

Lucid often appears as a Tesla rival, but Rawlinson tells TechCrunch that it intends to be a rival to the Mercedes S-Class, the flagship of the German car maker’s internal combustion engine. The investor presentation released on Monday reflects Rawlinson’s earlier comment that “Tesla is innovative but not luxurious.” Lucido describes himself as “post-luxury” and competes with “established luxury” brands Audi, BMW and Mercedes-Benz.

Lucid takes a page from Tesla’s playbook, expands production, and eventually outlines plans to offer a more affordable EV.

Rawlinson will continue to be CEO and CTO. The transaction is expected to close in the second quarter.

Lucid Motors strikes SPAC deal to go public with $24 billion valuation – TechCrunch Source link Lucid Motors strikes SPAC deal to go public with $24 billion valuation – TechCrunch

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