The deal between Newark, California-based Lucid and Churchill Capital Corp IV is the biggest in a collection of such tie-ups involving EV corporations and blank-check corporations, often known as a particular function acquisition corporations, or SPACs.
Earlier SPAC offers with EV start-ups similar to Nikola, Fisker and Lordstown Motors garnered pro-forma valuations of lower than $4 billion, however Lucid is farther alongside than these corporations. Lucid is about to ship its first car – a luxurious sedan referred to as the Air – this spring.
The deal will generate about $4.4 billion in money for enlargement plans for Lucid, together with its present manufacturing unit in Arizona.
Shares of CCIV fell by roughly 30% to $40 in prolonged buying and selling.
Lucid is led by ex-Tesla engineering government and automotive veteran Peter Rawlinson, who joined the corporate as chief expertise officer in 2013 earlier than including CEO to his obligations in April 2019. He’ll proceed in these roles following the anticipated closure of the deal within the second quarter, in keeping with the businesses.
Lucid had some problem acquiring capital to fund its plans till September 2018 when it acquired $1 billion from Saudi Arabia’s sovereign wealth fund.
Rawlinson final yr described SPAC offers as fast cash, however not sufficient capital to convey a car to manufacturing in-house, which has led corporations similar to Fisker to hunt contract producers.
Previous to the announcement with Klein’s agency, Rawlinson stated the corporate had the funding to begin producing the Air at a plant in Casa Grande, Arizona, which is situated southeast of Phoenix.
The brand new funding is predicted to help Lucid in its enlargement plans. Rawlinson expects the Air to be the catalyst for a lineup of future all-electric autos, together with an SUV beginning manufacturing in early 2023 and extra reasonably priced autos down the road.
Lucid at present employs practically 2,000 folks, with 3,000 workers anticipated to be added within the U.S. domestically by the top of 2022, in keeping with the corporate.
The deal features a complete funding of about $4.6 billion. It’s being funded by $2.1 billion in money from CCIV and a $2.5 billion absolutely dedicated PIPE at $15 per share by Saudi Arabia’s sovereign wealth fund in addition to funds and accounts managed by BlackRock, Constancy and others.