Lucid Motors strikes SPAC deal to go public with $24 billion valuation – TechCrunch

Lucid Motors completes $700M factory to produce its first electric vehicles – TechCrunch

Lucid Motors reached an settlement to grow to be a publicly traded firm via a merger with special-purpose acquisition firm Churchill Capital IV Corp, within the largest deal but between a blank-check firm and electrical car startup. 

The mixed firm, wherein Saudi Arabia’s sovereign fund will proceed to be the most important shareholder, can have a transaction fairness worth of $11.75 billion. Personal funding within the public fairness deal is priced at $15 a share, placing the implied the pro-forma fairness worth at $24 billion. The announcement comes greater than every week after Bloomberg, citing unnamed sources, reported a deal was near being finalized.

Lucid follows a string of different, albeit smaller valued, SPAC mergers with electrical car startups which have been introduced this 12 months, together with Arrival, Canoo, Fisker and Lordstown Motors. A number of EV infrastructure corporations together with EVgo and ChargePoint have additionally become public companies by way of SPAC mergers.

Lucid might need been probably the most anticipated. The hype and hypothesis that has been rampant for weeks drove up the inventory worth of Churchill Capital IV Corp from its opening worth of $10 a share greater than 470% since January 2021. The skyrocketing share worth, plummeted greater than 30% after the main points of the deal had been introduced.

The non-public funding and money from Churchill will present roughly $4.4 billion in complete funding to Lucid. That capital might be put to work to hurry up and develop Lucid’s plans. The corporate plans to start manufacturing and deliveries of the Lucid Air in North America within the second half of this 12 months. The Air will come to Europe in 2022, adopted by China in 2023. The Gravity efficiency luxurious SUV is predicted to come back to market in North America in 2023. The autos might be produced at its new manufacturing unit in Casa Grande, Arizona. 

The funding might be used to deliver these two autos to market in addition to to develop its manufacturing unit in Arizona, Lucid CEO and CTO Peter Rawlinson stated Monday. The corporate plans to develop the manufacturing unit over one other three phases within the coming years to have the capability to supply 365,000 models per 12 months at scale. The preliminary part of the $700 million manufacturing unit was accomplished late final 12 months and can have the capability to supply 30,000 autos a 12 months.

Lucid Motors air EV

Picture Credit: Lucid Motors

The deal can even assist Lucid understand its imaginative and prescient to provide electrical car applied sciences to 3rd events equivalent to different automotive producers in addition to supply vitality storage options within the residential, business and utility segments, Rawlinson stated.

Scaling an electrical car firm is just not low-cost or simple. Lucid narrowly missed imploding a number of years in the past because it struggled to seek out an investor that would offer the capital it wanted to deliver its ultra-luxe electrical Air sedan into manufacturing. That investor ended up being Saudi Arabia’s sovereign wealth fund, which agreed in September 2018 to invest $1 billion into Lucid Motors.

Lucid started in 2007 as Atieva, an organization based by former Tesla VP and board member Bernard Tse and entrepreneur Sam Weng that centered on creating electrical automotive battery expertise. The early analysis, growth and eventual progress within the parts and total electrical structure would lay the vital floor work for the long run Lucid, which emerged on the finish of 2016 with new publicly said function to make electrical autos (though the corporate had already been working quietly at this for a few years). Rawlinson, who left Tesla to affix Lucid in 2013 as CTO, was one of many driving forces behind this new mission. He later took on the CEO title and accountability as effectively.

Whereas Lucid is usually couched as a competitor to Tesla, Rawlinson has informed TechCrunch the Air is supposed to be a rival of the Mercedes S Class, the interior combustion engine flagship of the German automaker. The investor presentation launched Monday echoes Rawlinson’s earlier feedback, noting that “Tesla is revolutionary however not luxurious.” Lucid describes itself as “publish luxurious” and in competitors with “established luxurious” manufacturers Audi, BMW and Mercedes-Benz.

Lucid is taking a web page out of Tesla’s playbook and outlined plans to finally supply extra reasonably priced EVs as soon as it scales manufacturing.

Rawlinson will stay as CEO and CTO. The deal is predicted to shut within the second quarter.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *