Peter Rawlinson, CEO of Lucid Motors, said on Tuesday what he calls the electric car business ‘world-class technology’, but acknowledged challenges surrounding car production.
Rawlinson, a former Tesla engineering manager, appeared on CNBC this morning after Lucid announced a reverse merger with Churchill Capital Corp IV, a specialty procurement company. This is the largest SPAC transaction involving an EV company. SPACs are an alternative to initial public offerings for companies that want to become equities.
CCIV shares fell nearly 48% to $ 30 a share early Tuesday before recovering from losses, giving Reuters a market value of more than $ 50 billion, larger than Ford Motor. By comparison, direct competitor Tesla has a market capitalization of more than $ 637 billion.
Prior to Monday night’s announcement and the subsequent decline in equities, the recent speculation of CCIV transactions increased by 470% this year alone. Following the completion of the transaction, which took place in the second quarter, Lucid is expected to be listed on the New York Stock Exchange under the short LCID.
“I think the valuation is a reflection of our technology,” Rawlinson said, adding that more work needs to be done for Lucid to generate investor returns. “What we need to do now is to carry it out humbly and diligently and put it into production. That is what will drive the value to it,” he stressed in recognition that the production of an electric motor on a mass scale is a difficult attempt is.
The delivery of Lucid’s first car, the all-electric Air, is now, for the second half of this year, a delay from the previous forecast. Production will take place at a plant the company built in southeast Phoenix in Casa Grande, Arizona. The Air starts at $ 77,400, excluding the federal EV tax credit.
According to Lucid, according to the investor offer in 2026, he will earn $ 2.9 billion in EBITDA, or earnings before interest, tax, depreciation and amortization. It is planned to deliver 251 000 vehicles that year. In addition to the luxury Air, Lucid plans to start manufacturing a sports utility vehicle in 2023 and eventually make ‘cheaper’ vehicles down the road. Batteries manufactured by Lucid’s technology division, Atieva, are currently used on the Formula E electric racetrack.
“I think we have an ambitious yet achievable plan. We have shown that we can be executive,” Rawlinson said. “If you look at the factory we built today, we did it in record time.”
Rawlinson also spoke about the experience of the drivers and executives around him, including those who previously had careers at companies like Tesla and Apple. According to the investor presentation, former officials of traditional car manufacturers such as Mazda, Ford and Audi are also on board.
“We have the expertise. We have the record at delivery,” said Rawlinson, who worked on the Model S when he was in Tesla. ‘However, what’s really important, especially in the next few months, is to get our first product into production. This is the wonderful litmus test. ‘