The Lucid Air sedan, which is anticipated to go into manufacturing subsequent 12 months at a plant being constructed in Arizona.
Electric vehicle firm Lucid Motors plans to go public at an $11.75 billion mixed fairness valuation and $24 billion pro-forma fairness worth via a reverse merger with a blank-check firm began by veteran funding banker Michael Klein.
The deal between Newark, California-based Lucid and Churchill Capital Corp IV is the biggest in a sequence of such tie-ups involving EV corporations and blank-check companies, also called a particular function acquisition corporations, or SPACs.
Previous SPAC offers with EV start-ups corresponding to Nikola, Fisker and Lordstown Motors garnered pro-forma valuations of lower than $4 billion, however Lucid is farther alongside than these corporations. Lucid is about to ship its first vehicle – a luxurious sedan referred to as the Air – this spring.
The deal will generate about $4.4 billion in money for growth plans for Lucid, together with its present manufacturing facility in Arizona.
Shares of CCIV fell by roughly 30% to $40 in prolonged buying and selling.
Lucid is led by ex-Tesla engineering government and automotive veteran Peter Rawlinson, who joined the corporate as chief expertise officer in 2013 earlier than including CEO to his duties in April 2019. He will proceed in these roles following the anticipated closure of the deal in the second quarter, in accordance to the businesses.
Lucid was based in 2007 as Atieva, a reputation it now makes use of for its engineering and tech arm that provides batteries to electrical racing circuit Formula E. The firm first targeted on electrical battery expertise earlier than altering its identify and shifting to an electrical vehicle producer in 2016, three years after Rawlinson joined the corporate to lead its expertise growth.
Lucid had some problem acquiring capital to fund its plans till September 2018 when it acquired $1 billion from Saudi Arabia’s sovereign wealth fund.
Rawlinson final 12 months described SPAC offers as fast cash, however not sufficient capital to convey a vehicle to manufacturing in-house, which has led companies corresponding to Fisker to search contract producers.
Prior to the announcement with Klein’s firm, Rawlinson stated the corporate had the funding to begin producing the Air at a plant in Casa Grande, Arizona, which is situated southeast of Phoenix.
The new funding is anticipated to help Lucid in its growth plans. Rawlinson expects the Air to be the catalyst for a lineup of future all-electric autos, together with an SUV beginning manufacturing in early 2023 and extra inexpensive autos down the road.
Lucid at the moment employs practically 2,000 individuals, with 3,000 staff anticipated to be added in the U.S. domestically by the tip of 2022, in accordance to the corporate.
The deal features a complete funding of about $4.6 billion. It is being funded by $2.1 billion in money from CCIV and a $2.5 billion totally dedicated PIPE at $15 per share by Saudi Arabia’s sovereign wealth fund in addition to funds and accounts managed by BlackRock, Fidelity and others.