Lucid Motors, an electric car start-up led by the chief engineer of Tesla’s Model S sedan, goes public by merging with Churchill Capital IV, a special-purpose acquisition company listed on the New York Stock Exchange , in a deal worth an estimated $ 24 billion. .
Development – what Lucid CEO Peter Rawlinson recently said TBEN was a possible fundraising option – comes weeks before the release of the Lucid Air, a premium electric sedan initially priced at $ 169,000 that will be built at the company’s new plant in Casa Grande, Arizona. The deal includes approximately $ 2.1 billion in cash from Churchill Capital and $ 2.5 billion from a private placement of shares to investors including Saudi Arabia’s Public Investment Fund, BlackRock, Fidelity, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital Management.
“Lucid goes public to accelerate the next phase of our growth” after Air’s launch, Rawlinson, who is also the technical director of the Newark, Calif., Based company and co-founder, said in a statement. The funds will help launch Lucid’s second model, the Gravity SUV, in 2023 and “will also be used to support the expansion of our manufacturing facility in Arizona, which is the first on-site electric vehicle manufacturing facility in North America. North, and is already operational for pre-production of the Lucid Air. “
The transaction’s estimated value of $ 24 billion is based on an expected PIPE offering price of $ 15 per share and is the largest such transaction with PSPC to date, Churchill Capital said in a statement.
The fundraising move positions Lucid to rapidly accelerate its operations in the rapidly developing electric vehicle market, dominated by Elon Musk’s Tesla for a decade. Unlike many electric vehicle startups, however, Rawlinson and his team of engineers have been refining the Air for years and have extensive experience bringing battery-powered automobiles to market. The company’s Arizona plant will receive sufficient funds from the PSPC merger to ultimately be able to build 365,000 vehicles per year as the company adds models in the mid-range $ 40,000 price bracket within three. at five years.
“The company’s superior and proven technology, supported by a clear demand for a sustainable electric vehicle, makes Lucid a very attractive investment for Churchill Capital Corp IV shareholders, many of whom are more focused on sustainability,” said Michael Klein, CEO and President of CCIV, in a statement. We are delighted to partner with Peter and the rest of the Lucid leadership team to bring the highly anticipated Lucid Air to market later this year, promising a significant disruption in the electric vehicle market and creating thousands of jobs. across the United States. “
The Air’s “Dream” edition arriving this spring will likely overtake the current top-of-the-line Model S with a charge of 517 miles per charge, faster recharging, and the ability to go from 0 mph to 60 mph in just a bit. more than 2 seconds. Rawlinson also says the car will be equipped with the most efficient battery and electric motor on the market.
Saudi Arabia’s PIF is Lucid’s largest investor, investing $ 1.3 billion in the Silicon Valley-based company in 2018, which helped build the first phase of the plant in Arizona. Rawlison said the company, which currently has around 2,000 employees, is also in talks to build Saudi Arabia’s first auto plant to manufacture its electric sedans and crossovers.
Shares of CCIV rose 8.4% to close at $ 57.37 in New York on Monday.