Tesla rival Lucid Motors to go public in $24-billion mega SPAC deal

Tesla rival Lucid Motors to go public in $24-billion mega SPAC deal

News: Tesla rival Lucid Motors to go public in $24-billion mega SPAC deal.

(Reuters) – Luxury electric vehicle maker Lucid Motors agreed to go public on Monday by partnering with blank check firm Churchill Capital IV Corp to create the combined company with a pro forma equity value of 24 billion Appreciate US dollars.

Lucid, led by a former Tesla engineer, is the youngest company to enter the IPO market. Investors are rushing into the EV sector, fueled by the rise of Tesla Inc and tightening emissions regulations in Europe and elsewhere.

The deal, with a transaction capital value of $ 11.75 billion, includes a cash contribution of $ 2.1 billion from CCIV and a private investment in public equity (PIPE) investment of $ 2.5 billion from investors.

Other prominent players in the sector went public last year through mergers with so-called Special Purpose Acquisition Companies (SPACs). While some deals like Fisker have delivered well, others like Nikola have given up short-term profits.

Reuters first reported last week that Michael Klein had launched a funding campaign to support the Lucid deal.

CCIV’s publicly traded shares fell nearly a third to $ 40.35 in volatile expanded trading, giving the merged company a market cap of approximately $ 64 billion. For comparison: General Motors Co is valued at around $ 76 billion.

Lucid said it is on track to begin production and delivery in North America of Lucid Air, its first luxury sedan, in the second half of this year. The company had previously announced that it would start deliveries in spring 2021.

Lucid, who plans to build vehicles at its Arizona plant, plans to deliver 20,000 vehicles in 2022 and 251,000 vehicles in 2026 by adding other models such as an electric sport utility vehicle.

With a starting price of $ 77,400, the sedan will be the first to achieve a range of 805 km.

After Lucid rated its sedan, Tesla CEO Elon Musk announced a price cut for its flagship Model S sedan. “The glove was thrown off!” he tweeted.

CCIV, backed by Wall Street dealmaker and former Citigroup banker Michael Klein, and new private investors receive shares at different prices, with newer private investors paying a premium.

The deal with CCIV includes a private investment of $ 2.5 billion from the Saudi Arabia Public Investment Fund, BlackRock and other managed funds.

Reporting by Niket Nishant, Shariq Khan and Sohini Podder in Bengaluru and Greg Roumeliotis in New York; Additional coverage from Hyunjoo Jin in San Francisco and Aishwarya Nair in Bengaluru; Letter from Subrat Patnaik; Adaptation by Stephen Coates and Gerry Doyle

Original Source © Reuters

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