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Lucid plans to target the very high point of the auto market.
Thanks to Lucid Motors
The possible merger between special procurement companies
Churchill Capital Corp IV
and the EV startup, Lucid Motors, turns out to be one of the worst kept secrets on Wall Street.
Shares of Churchill (ticker: CCIV) are rising again after another report that a merger announcement was imminent. Yet none of the companies are ready to confirm the deal.
Shares of Churchill rose about 30% on Tuesday, to $ 52. Shares traded below $ 37 early in the day. The stock was suspended for a short time due to volatility.
The deal is said to value Lucid at about $ 12 billion. Churchill has about $ 2 billion in cash in his books, which means it will account for about 17% of the new company. This is a very rough guideline and will change when, or when the details of the transaction appear.
With a $ 52 trade in Churchill, the implied, updated value of Lucid could exceed $ 40 billion. Most SPAC transactions are made based on the $ 10 unit price at which SPACs issue shares.
It is just not clear whether the value of $ 12 billion today is the valuation or the valuation on which the agreement is made. There are just too few details. Churchill and Lucid were not immediately available for comment on today’s report.
EV manufacturer
Fisker
(FSR), by comparison, is valued at approximately $ 6 billion, based on its 294 million outstanding diluted shares. Fisker plans to buy an approximately $ 40,000 SUV that will go on sale around 2022.
Lucid plans to target the very high point of the auto market. It will start with an aspirational EV model that can cost more than $ 165,000 and boasts 1,080 horsepower, fast charging times and more than 500 miles on a single charge. The first luxury Lucids may be on the streets later this year before the company manufactures luxury cars in 2022.
Expectations for Lucid products are high. The Churchill share has risen more than 400% over the past three months, hurting the comparative return on investment
S&P 500
and
Dow Jones Industrial Average.
Write to Al Root at [email protected]