The Lucid Air sedan, which is expected to go into production next year at a plant being built in Arizona.
Lucid
Lucid Motors, an electric vehicle company, plans to merge at a combined valuation of $ 11.75 billion and a pro-forma value of $ 24 billion through a reverse merger with a blankcheck company, led by veteran investment banker Michael Small start is.
The agreement between Lucid and Churchill Capital Corp IV in Newark, California, is the largest in a series of such bonds involving EVs and blankcheck companies, also known as specialty acquisition companies, or SPACs.
Previous SPACs with EV companies such as Nikola, Fisker and Lordstown Motors have received pro-forma valuations of less than $ 4 billion, but Lucid is beyond those companies. Lucid is going to deliver his first vehicle – a luxury sedan called the Air – this spring.
The deal will raise about $ 4.4 billion in cash for expansion plans for Lucid, including the current plant in Arizona.
Shares of CCIV fell about 30% in extensive trading to $ 40.
Lucid is led by former Tesla engineering driver and automotive veteran Peter Rawlinson, who joined the company in 2013 as chief technology officer before adding the CEO in April 2019. He will continue in these roles after the expected closure of the agreement in the second quarter, according to the 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 electric racetrack. The company first focused on electric battery technology before changing its name and switching to an electric vehicle manufacturer in 2016. , three years after Rawlinson joined the company to lead technology development.
Lucid was struggling to raise capital to finance his plans, until September 2018, when he received $ 1 billion from Saudi Arabia’s sovereign wealth fund.
Rawlinson described SPAC transactions last year as fast money, but not enough capital to bring a vehicle into production internally, which led companies like Fisker to look for contract manufacturers.
Prior to the announcement with Klein’s firm, Rawlinson said the company had the financing to start manufacturing the Air at a plant in Casa Grande, Arizona, located southeast of Phoenix.
The new funding is expected to help Lucid with its expansion plans. Rawlinson expects the Air to be the catalyst for a range of future electric vehicles, including an SUV starting in early 2023 and more affordable vehicles.
Lucid currently employs nearly 2,000 people, and according to the company, 3,000 employees within the US are expected to be added by the end of 2022.
The deal includes a total investment of approximately $ 4.6 billion. It is funded by CCIV with $ 2.1 billion in cash and a full $ 2.5 billion PIPE at $ 15 per share through Saudi Arabia’s sovereign wealth fund, as well as funds and accounts managed by BlackRock, Fidelity and others.