Lucid Motors will become a publicly traded company on the New York Stock Exchange in a deal that will leave the electric vehicle startup with $ 4.4 billion in cash. The California startup, which is majority-owned by Saudi Arabia’s sovereign wealth fund, plans to start shipping its first luxury electric vehicle, the 500-mile-range Air sedan, later this year. An electric SUV is slated to follow in 2023.
Like many other startups in the automotive space have done over the past year, Lucid Motors is skipping the traditional path to becoming a publicly traded company and is instead merging with an acquisition company of special purpose, or SPAC. Specifically, Lucid Motors will merge with Churchill Capital Corp IV, which is already listed on the New York Stock Exchange. Bloomberg It first reported that Lucid Motors and Churchill, which is run by investor Michael Klein, who has designed deals for Saudi Arabia in the past, were in talks in January.
About $ 2.1 billion of that cash will come from Churchill. Some $ 2.5 billion will come from a new round of funding that will take place at the same time as the merger, which is backed by Saudi Arabia but includes BlackRock, Fidelity Management and others. The deal values Lucid Motors at $ 24 billion.
Led by Peter Rawlinson, a former Tesla engineer who helped bring the Model S to life, Lucid Motors was founded in 2007 as Atieva. It initially focused on battery technology, but eventually grew into an electric vehicle startup a few years ago. Since then it has grown to more than 2,000 employees and began construction of a $ 700 million factory in Arizona where the Air will be built.