Tesla rival Lucid Motors to go public in $ 11.8 billion blank check merger

(Reuters) – Luxury electric vehicle maker Lucid Motors agreed to go public on Monday by merging with blank check firm Churchill Capital IV Corp in a deal that valued the combined company at $ 11.75 billion.

Lucid, led by a former Tesla engineer, is the latest company to tap into the initial public offering market, with investors rushing into the electric vehicle sector, fueled by the rise of Tesla Inc and with emissions regulations every day. stricter in Europe and elsewhere.

Other prominent players in the sector went public through mergers with so-called special purpose acquisition companies (SPACs) last year. While some deals like Fisker have worked well, others like Nikola have given up on short-term gains.

CCIV’s publicly traded shares fell nearly a third to $ 40.35 in volatile extended trading, giving the merged company a market capitalization of approximately $ 64 billion. By comparison, General Motors Co is worth around $ 76 billion.

Lucid said it is on track to begin production and deliveries in North America in the second half of this year with Lucid Air, its first luxury sedan. It had previously said that it planned to begin its deliveries in the spring of 2021.

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

With a starting price of $ 77,400, the sedan is slated to be the first to achieve a 500-mile (805 km) driving range.

After Lucid set the price for his sedan, Tesla boss Elon Musk announced a price cut for his flagship Model S sedan. “The gauntlet was thrown!” tweeted.

CCIV, which has the backing of Wall Street negotiator and former Citigroup banker Michael Klein, and new private investors are raising shares at different prices, with newer private investors paying a premium.

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

(Reported by Niket Nishant, Shariq Khan, and Sohini Podder in Bengaluru and Greg Roumeliotis in New York; Additional reporting by Hyunjoo Jin in San Francisco; Written by Subrat Patnaik; Editing by Stephen Coates)

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