Lucid Air

Lucid Motors to go public for a $24 billion SPAC deal.

NEWARK, Calif., and NEW YORK, NY, February 22, 2021 – Lucid Motors (“Lucid”), known for its advanced luxury EVs and founded by an ex-Tesla engineer has announced to go public in a $24 billion SPAC deal. Lucid Motors and Churchill Capital Corp IV (NYSE: CCIV) (“CCIV” or “Churchill”), a special purpose acquisition company (SPAC), announced today that they have entered into a definitive merger agreement. CCIV and Lucid are combining at a transaction equity value of $11.75 billion. The transaction values Lucid at an initial Pro-forma equity value of approximately $24 billion at the PIPE offer price of $15.00 per share and will provide Lucid with approximately $4.4 billion in cash (assuming no existing CCIV shares are redeemed for cash at closing).

Lucid Air
Lucid Air
  • Lucid Motors to go public.
  • The transaction includes an approximately $2.1 billion cash contribution by CCIV and a $2.5 billion, fully committed PIPE with an investor lock-up provision that binds holders well beyond closing. The PIPE is priced at $15.00 per share (a 50% premium to CCIV’s net asset value) with an implied pro forma equity value of $24 billion.
  • PIPE investment anchored by the Public Investment Fund (PIF) as well as funds and accounts managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, Neuberger Berman, Wellington Management, and Winslow Capital Management, LLC.
  • This transaction includes the largest ever SPAC-related common stock PIPE.
  • Peter Rawlinson will continue to lead Lucid as CEO and CTO.
  • Lucid currently employs nearly 2,000 people, with 3,000 employees expected to be added to the U.S. domestically by the end of 2022.

Also Read: Rolls Royce developing electric propulsion system for eVTOL Air Taxis.

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Peter Rawlinson, CEO, and CTO of Lucid said, “Lucid is proud to be leading a new era of high-technology, high-efficiency zero-emission transportation. Through a ground-up rethinking of how EVs are designed, our in-house-developed, race-proven technology and meticulous engineering have enabled industry-leading powertrain efficiency and new levels of performance. Lucid is going public to accelerate into the next phase of our growth as we work towards the launch of our new pure-electric luxury sedan, Lucid Air, in 2021 followed by our Gravity performance luxury SUV in 2023. Financing from the transaction will also be used to support the expansion of our manufacturing facility in Arizona, which is the first greenfield purpose-built EV manufacturing facility in North America, and is already operational for pre-production builds of the Lucid Air. Scheduled to expand over three phases in the coming years, our Arizona facility is designed to be capable of producing approximately 365,000 units per year at scale. Lastly, this transaction further enables the realization of our vision to supply Lucid’s advanced EV technologies to third parties such as other automotive manufacturers as well as offer energy storage solutions in the residential, commercial, and utility segments.”

Lucid Air
Lucid Air

Michael Klein, Chairman, and CEO of CCIV said, “CCIV believes that Lucid’s superior and proven technology backed by clear demand for a sustainable EV make Lucid a highly attractive investment for Churchill Capital Corp IV shareholders, many of whom have an increased focus on sustainability. We are pleased to partner with Peter and the rest of Lucid’s leadership team as it delivers the highly anticipated Lucid Air to market later this year, promising significant disruption to the EV market and creating thousands of jobs across the U.S.”

As per Lucid Motors, Lucid Air (luxury EV from Lucid) will deliver efficiency with a projected range of over 500 miles on a single charge – ahead of all competitors on the market today. Lucid recently built its vehicle manufacturing facility from the ground up as well as its in-house EV powertrain manufacturing facility in Casa Grande, Arizona.

Lucid’s first car, the Lucid Air, is a state-of-the-art luxury sedan with a California-inspired design underpinned by race-proven technology. Featuring a luxurious full-size interior in a mid-size exterior, the Air will be capable of an EPA estimated range of over 500 miles and 0-60 mph in under 2.5 seconds. Customer deliveries of the Lucid Air, which will be produced at Lucid’s new factory in Casa Grande, Arizona, will accelerate in the second half of 2021 as the factory increases production. 

Lucid’s proprietary EV technology, including its battery technology, is currently powering every vehicle in the world’s leading EV racing series Formula E.

Also Read: Sony’s Vision-S car has begun public road testing in Austria.

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