Lucid Motors, a maker of luxury electric vehicles, is finally going public. After a month of speculation, this special purpose acquisition company (SPAC) Churchill Capital IV (NYSE: CCIV) would merge with the promising EV company, it happened. The transaction values the combined entity at $ 11.75 billion, but, taking into account all aspects of the business, the company would be valued at $ 24 billion.
Lucid Motors will receive an injection of $ 4.4 billion in cash from Churchill Capital IV and private equity investors (PIPE). PIPE investors entered the business at a price of $ 15 per share, or 50% above Churchill’s $ 10 starting price.
Lucid Motors Air luxury electric sedan. Image source: Lucid Motors.
Peter Rawlinson, ex Tesla (NASDAQ: TSLA) chief engineer, will remain as CEO and CTO of Lucid. “Lucid is going public to accelerate the next phase of our growth,” said Rawlinson. The company’s first luxury sedan, the $ 161,500 Air Dream Edition, will be available starting this year at its Arizona plant.
Rawlinson also said that Lucid will follow the Air sedan model with a luxury SUV called Gravity from 2023. The Arizona facility will be able to produce 365,000 units with maximum capacity.
Lucid doesn’t stop there. Rawlinson suggested further trade deals, commenting that “this transaction further enables us to realize our vision of providing Lucid’s advanced EV technologies to third parties[,] like other automotive manufacturers[,] in addition to offering energy storage solutions in the residential, commercial[,] and public service segments. “