Lucid Motors reached an agreement to develop into a publicly traded firm thru a merger with special-motive acquisition firm Churchill Capital IV Corp, in the finest deal but between a blank-review firm and electric automobile startup.
The combined firm, in which Saudi Arabia’s sovereign fund will continue to be the finest shareholder, can have a transaction fairness payment of $11.75 billion. Deepest funding in the public fairness deal is priced at $15 a half, striking the implied the skilled-forma fairness payment at $24 billion. The announcement comes larger than a week after Bloomberg, citing unnamed sources, reported a deal used to be shut to being finalized.
Lucid follows a string of a lot of, albeit smaller valued, SPAC mergers with electric automobile startups which have been announced this year, including Arrival, Canoo, Fisker and Lordstown Motors. Several EV infrastructure companies including EVgo and ChargePoint have additionally develop into public companies thru SPAC mergers.
Lucid would perhaps perchance have been essentially the most anticipated. The hype and hypothesis that has been rampant for weeks drove up the stock impress of Churchill Capital IV Corp from its opening impress of $10 a half larger than 470% since January 2021. The skyrocketing half impress, plummeted larger than 30% after the facts of the deal have been announced.
The non-public funding and money from Churchill will present roughly $4.4 billion in total funding to Lucid. That capital will be put to work to flee up and amplify Lucid’s plans. The firm plans to start manufacturing and deliveries of the Lucid Air in North The US in the 2d half of of this year. The Air will reach to Europe in 2022, adopted by China in 2023. The Gravity efficiency luxury SUV is anticipated to reach to market in North The US in 2023. The automobiles will be produced at its contemporary factory in Casa Grande, Arizona.
The funding will be pale to raise these two automobiles to market moreover to to amplify its factory in Arizona, Lucid CEO and CTO Peter Rawlinson acknowledged Monday. The firm plans to amplify the factory over one more three phases in the arriving years to have the skill to produce 365,000 models per year at scale. The preliminary portion of the $700 million factory used to be accomplished gradual final year and would perhaps perchance simply have the skill to produce 30,000 automobiles a year.
The deal will additionally again Lucid realize its imaginative and prescient to present electric automobile applied sciences to third parties similar to assorted automotive manufacturers moreover to offer energy storage solutions in the residential, business and utility segments, Rawlinson acknowledged.
Scaling an electric automobile firm isn’t very cheap or uncomplicated. Lucid narrowly overlooked imploding a lot of years ago because it struggled to receive an investor that will present the capital it wanted to raise its extremely-luxe electric Air sedan into manufacturing. That investor ended up being Saudi Arabia’s sovereign wealth fund, which agreed in September 2018 to invest $1 billion into Lucid Motors.
Lucid started in 2007 as Atieva, a firm founded by dilapidated Tesla VP and board member Bernard Tse and entrepreneur Sam Weng that alive to on growing electric automotive battery skills. The early research, construction and eventual progress in the map and total electric structure would lay the necessary ground work for the future Lucid, which emerged at the dwell of 2016 with contemporary publicly talked about motive to invent electric automobiles (even supposing the firm had already been working quietly at this for a pair of years). Rawlinson, who left Tesla to join Lucid in 2013 as CTO, used to be one amongst the using forces in the help of this contemporary mission. He later took on the CEO title and accountability as successfully.
While Lucid is on the total couched as a competitor to Tesla, Rawlinson has told TechCrunch the Air is supposed to be a rival of the Mercedes S Class, the inner combustion engine flagship of the German automaker. The investor presentation released Monday echoes Rawlinson’s earlier comments, noting that “Tesla is revolutionary however not luxury.” Lucid describes itself as “post luxury” and in competition with “established luxury” manufacturers Audi, BMW and Mercedes-Benz.
Lucid is taking a web page out of Tesla’s playbook and outlined plans to sooner or later offer extra affordable EVs once it scales manufacturing.
Rawlinson will dwell as CEO and CTO. The deal is anticipated to shut in the 2d quarter.