Lucid
- Churchill Capital IV jumped 13% after an update to the Bloomberg terminal suggested that a consortium of investors led by VC Venrock Associates was looking to sell Lucid Motors.
- Lucid and Churchill Capital IV are rumored to have been in merger negotiations since January 11.
- The news comes as Lucid plans to launch its first production vehicle this spring.
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Churchill Capital IV (CCIV) shares rose by 13% on Friday amid new signs that the company may be trying to acquire EV maker Lucid Motors from an investment consortium led by VC Venrock Associates.
Traders responded to a note from the Bloomberg terminal suggesting that CCIV was in negotiations with Venrock Associates and a group of Lucid investors. No new conversations have been announced or reported in any other way.
Venrock Associates is one of Lucid’s oldest investors. The venture capital firm bought the company for the first time in 2009, in a $ 7 million Series B financing round, when Lucid was still a small battery manufacturer called Atieva.
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Rumors of a possible sale or merger of Lucid Motors with CCIV have been circulating for some time.
On January 11, Bloomberg reported for the first time that Lucid Motors was in negotiations to go public through a merger with the special purpose acquisition company. The news caused a 50% rise in the price of CCIV in just two days. Since then, the shares have appreciated more than 240%, as investors continue to evaluate SPAC as if a deal with Lucid was in progress.
Lucid Motors first gained media attention with the launch of its luxury EV, the Lucid Air. Even the base model of the electric vehicle will offer a range of 406 miles and 0-60 of 2.5 seconds. The company says it will start at $ 69,900 with the incorporation of federal tax credits as well.
Lucid also made headlines recently after opening a production facility in Casa Grande, Arizona, where it plans to manufacture 400,000 vehicles a year.
Although, for now, there will be limited production of the company’s flagship model, the Air Dream Edition, which starts at $ 169,000 and will offer 1,080 horsepower and a range of 517 miles.
Lucid plans to produce its first salable cars at the Casa Grande plant this spring.
Churchill Capital IV was up 13% at $ 35.60 a share as of 9:56 am ET on Friday.
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